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.
After 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 …
- New Zealand
- Hong Kong
- South Africa
- Slovak Republic
- United Arab Emirates
- Trinidad and Tobago
- 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!