Category: bank runs

Ottawa Grants Itself Extraordinary Powers to Prepare for ‘Potential’ Bank Runs

April 29, 2023
bank runsCanadaCredit Suissedeposit insuranceFinance Minister Chrystia FreelandSignature BankSilicon Valley BankWorld
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Bank scares in the United States and Switzerland have prompted the federal government to grant itself extraordinary powers to stem any financial panic in Canada, a parliamentary committee heard on April 27. Testifying before the Standing Committee on Finance, Rachel Grasham, a senior director with the federal finance department said those powers will be used…

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Mervyn King’s Proposal for Preventing Bank Runs Deserves Another Hearing

April 28, 2023
bank runsbanking crisisDodd-Frank Actfinancial crisisMervyn KingOpinionU.S. economyViewpoints
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Commentary March was a bad month for the Dodd-Frank Act. We now know that Dodd-Frank, passed in the wake of the 2007–2008 banking crisis, doesn’t prevent bank runs. Neither do post–2008 arrangements tell depositors whether large deposits are safe or should be withdrawn with a swipe on a smartphone. This time, uninsured deposits were bailed…

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Reports of Depositor Accounts Being Frozen, as China’s Banking Crisis Spreads

July 21, 2022
bank runsChinaChina Business & EconomyChinese Regimefronzen accountsHainanHenanmortgage boycottSocial Issues
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Bank depositors in several Chinese provinces have reported their bank and credit accounts have been frozen, actions seen as being related to bank runs in Henan and a nationwide mortgage boycott. Experts say this all indicates that China’s economy is in a very precarious state. Mainland Chinese media Securities Daily reported on July 18 that…

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