Does anyone know what the hell this is?
- Thread starter Robert Mugabe
- Start date
This is not an actual bank closure or liquidation date, but rather a legislative mechanism known as a sunset provision.
Under Canadian federal law, specifically the Bank Act, all banks are granted a temporary legal authority to operate that expires on a set date. This was extended to June 30, 2033.
* What it means: The Canadian government requires banking laws to be reviewed and modernized every few years. If the federal government does not pass new legislation to renew the Bank Act before this deadline, banks would theoretically lose their legal authority to conduct business.
* Historical context: These expiration dates are standard procedure in Canada. Parliament routinely conducts a statutory review and passes an extension or updated charter well before the sunset date arrives.
Under Canadian federal law, specifically the Bank Act, all banks are granted a temporary legal authority to operate that expires on a set date. This was extended to June 30, 2033.
* What it means: The Canadian government requires banking laws to be reviewed and modernized every few years. If the federal government does not pass new legislation to renew the Bank Act before this deadline, banks would theoretically lose their legal authority to conduct business.
* Historical context: These expiration dates are standard procedure in Canada. Parliament routinely conducts a statutory review and passes an extension or updated charter well before the sunset date arrives.
Thank you, sir. Another question. Are Canadian banks susceptible to a meltdown in the impending crash? I have quite a bit of TD shares which have done pretty well over the last few months. Excluding today.
Canadian banks are extremely unlikely to experience a meltdown during an economic crash. They have massive capital buffers and strict federal oversight.
Canadian banks are all currently at higher than historical norm P/E ranges. I just finished rebalancing our portfolio and trimmed about 10% off all our different Financials stock holdings, as they had grown faster than other subgroups. Lagging subgroup holdings had more shares bought with those proceeds
