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Should Canada prepare for a higher risk of bank runs?

Canada should prepare for a higher risk of bank runs in the future, according to a new report from the C.D. Howe Institute.

Will a SVB Bank run happen in Canada?

According to Canadian experts, a situation like the SVB bank run is highly unlikely to occur in Canada. Canadian banks generally have more regulation, such as stress tests on rising interest rates and third-party reviews. The U.S. also has a much higher number of small and medium-sized banks, which are subject to less regulation.

Should Canada prepare for a financial crisis?

“While Canada has not had any serious failures in many years, it would be best to prepare for possible problems now when things are quiet, rather than in the heat of the moment,” writes Mark Zelmer, a senior fellow at C.D. Howe who formerly served as the deputy superintendent at OSFI, Canada’s bank regulator.

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