Five Things You Didn't Know About Canada's Big Banks
Filed under: Family Finances, Investing, Saving, Mortgages
Greece and Cyprus are a mess and much of Europe is poised to join them. Canada's relative stability has been credited to, among others, the conservative and risk-averse nature of our five big banks -- RBC, TD Bank, CIBC, Scotiabank and BMO. Over the past five years Canadians have gained a new appreciation for our banking system and yet, there are some key things that many of us don't know -- but should -- about our big banks and how we interact with them.
With debt crises erupting on both sides of the Atlantic, the possibility of a double dip recession has become a very real threat. "People are suddenly realizing that the markets are not friendly creatures; the markets can suddenly turn on you," says economist David Marsh. So what can you do about it? How can you protect your retirement savings and other investments? Is the adage of buy and hold still applicable in this type of economic climate? And can you find the time to monitor it?
It's important to have a good relationship with your bank; after all, you're entrusting it with your life's savings, investments and debts -- and paying fees to boot. Luckily for Canadians, we've an array of good banks. But which one should you choose?
Canadian investors are in luck: our home stock market is predicted to chalk up some of the best returns in the world this year amid continued economic struggles in Europe and the United States and political turmoil in the Middle East.
It turns out that Canada's economy is in much better shape than previously thought, causing economists to bring forward their predictions of an interest rate hike.
Canadians have begun to react to fears about record debt levels with household debt rising at its lowest rate in 15 years in November. But while growth has slowed significantly, it is yet to reverse the rising trend, meaning the record-breaking run of mounting debt continues.
Things have been on the mend for the Canadian economy and conditions are going to continue to improve this year, Canada's Big Five bank economists say. Even so, economic growth will likely creep along at a slower pace than in 2010, meaning there will be no quick return to the boom times that preceded the recession of 2008-2009.
The Canadian dollar has kicked off 2011 in a position of strength. It is above parity with the U.S. dollar and trending at historically high levels against other major currencies such as the euro and the British pound.
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