Roundup and Link Love – Canada Has the Soundest Banks in the World Edition

by Ron Haynes

I get ridiculed sometimes because I actually read economic reports, but I was surprised to find that our neighbors to the north have built what is considered by the World Economic Forum’s Global Competitiveness Report as the “soundest banks in the world.” Way to go Canada! The full list is in the Data Tables section 8.07.

Canadian RockiesAfter doing a little more research, I discovered the reasons that Canadian banks are so strong: Canadian banks hold reserves of 9.8 percent while US banks typically hold 4 percent and European banks 3.3 percent. What’s interesting is that Canadian banks are required by regulators to maintain only 7 percent reserves. The additional reserves appear to be sound management practices, not regulation. You can’t regulate common sense.

Another reason is that investment banking houses in Canada are held to the same high standards as their regular commercial banks, in stark contrast to US banks, which operate like a mix between a Wild West cowboy, a suckling piglet, a guy who wants to sell you a Rolex from the trunk of his car, and a two year old throwing a fit while screaming “MINE! MINE! MINE!”

Here’s the Top 40 if you’re interested. It’s a shame, but I had to go all the way to 40 to include the United States …

  1. Canada
  2. Sweden
  3. Luxembourg
  4. Australia
  5. Denmark
  6. Netherlands
  7. Belgium
  8. New Zealand
  9. Ireland
  10. Malta
  11. Hong Kong
  12. Finland
  13. Singapore
  14. Norway
  15. South Africa
  16. Switzerland
  17. Namibia
  18. Chile
  19. France
  20. Spain
  21. Barbados
  22. Bahrain
  23. Slovak Republic
  24. Brazil
  25. Estonia
  26. Austria
  27. Panama
  28. Mauritius
  29. Kuwait
  30. Qatar
  31. United Arab Emirates
  32. Trinidad and Tobago
  33. Senegal
  34. Israel
  35. Portugal
  36. Iceland
  37. Cyprus
  38. Botswana
  39. Germany
  40. United States

If you’re an economics junkie like me, check out the report. I personally found it fascinating!

If economics isn’t your thing, you can check out some other great articles and posts from the Life Skills Network and beyond!

Apparently not everyone in Canada is a genius! Check out how NOT to sell your house at Quest for Four Pillars.

Over at Frugal Dad, he’s advocating planting trees now to help your energy bills next year. He has some other great ideas to help us use less energy as well.

David from My Two Dollars notes the small changes you can make to save big on groceries. There are some really great tips here!

Sara, who writes at On Simplicity, says that play is the ultimate act of simplicity. The world needs people who are ALIVE and play helps you come alive!

Pete at Bible Money Matters explores 401(k) loans to pay off debt. Considering the tax and future earnings consequences, you probably already know the answer, but head on over to check out the article.

Madison examines rate chasing with high yield savings accounts. There are a lot of options out there. Check out this post to get the latest scoop!

Lynnae is also planning on spending her . She has a great list of ways to get some good deals.

In case you’re wondering, YES! Now IS a good time to be living on a budget. Jeff at My Supercharged Life walks you through the steps.

Tired of seeing those tip jars absolutely EVERYWHERE? So is Glblguy. He wonders if tipping is getting out of hand.

Patrick at Cash Money Life knows how the credit crunch affects us and has some very good ideas to protect yourself.

Simple Mom reminds us of the common sense idea of shoping EARLY to avoid the rush! Personally, I prefer to shop online and use some ideas from my Black Friday post.

Marc wonders what you’d say if you had to write your life’s story in just one sentence. This is a tough one for me … this post is already up to 525 words as it is!

I don’t know how Geico manages to pull it off, but you should never make a Caveman angry!

Here’s a great idea from Frugal Hacks: DIY pest control.

Enjoy the links!

About the author

Ron Haynes has written 1000 articles on The Wisdom Journal.

The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.

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Four Pillars

Thanks for the link – it is interesting that the Canadian banks are in good shape.

I think a little bit of regulation came in handy (for once) but I also think the fact that the big 5/6 banks in Canada have their own little monopoly is also a factor. The banking sector is just not as competitive as in the US so they weren’t as motivated to take the bigger risks that their US counterparts did.

In the long run, more competition is better for the consumer and while the banks here may be strong – they charge a ton of fees. It’s better to be a bank owner in Canada rather than just a user.

Thanks for the great post,

p.s. – I’ll let out a little Canuck secret – there are many, many non-genious types here in Canada. :)

Paul Fraser

RBC Bank President Gordon Nixon – Salary $11.73 Million


I’m a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn’t familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail

“Fighting the Royal Bank of Canada (RBC Bank) one customer at a time” :mad:


Canada is a nice place to hang out with friends also Canadian banks is so strong.

That One Caveman

Heh. Lucky me that I’ve never been a GEICO customer. :) And lucky for Charter that I’m not a customer for much longer…


Well……I have the trees. :-) Makes a difference in our power bills too.

Thank you for the links!

God bless America!!!!!


Great list. Nice to know our banks are doing well.

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