excerpt from :
| Canadian Banking Regulators Sound the Alarm |
"...Canada’s banking regulator is urging the country’s major banks to review their accounting practices to ensure they have sufficient reserves as the commodity-price collapse takes a toll on the economy."
“We want them to take a good look at their accounting practices,” said Superintendent of Financial Institutions Jeremy Rudin. “They should support loss-absorbing capacity and the ability to manage through difficult times in general,” he added.
Regulators are taking notice and for good reason. The amount of exposure that the Canadian banking sector has to the flailing oil and gas markets is massive, equating to roughly C$107 billion!
People should be even more startled by the fact that this industry is nowhere near starting up again, even if prices were to recover tomorrow. It would take time to rehire and restart the production that has been shut down.
This current reality means that this ticking time bomb is set to explode in the hands of the Canadian Banking sector and thus cause a ripple effect across the Canadian economy and undoubtedly across the highly intertwined Western banking structure.
Could Canadian banks be the next spark that lights the match? Will this economic situation be the catalyst that sends us plummeting into the next major financial crisis? It is incredibly possible yet unknown. Sadly, the world is facing many scenarios that could cause similar turmoil."
http://news.goldseek.com/GoldSeek/1458828420.php
