If you think that the bank account confiscation happening in Cyprus is not going to happen here in Canada, you better think twice.
Harper Government included some interesting proposals for the next ‘Economic Action Plan 2013’, presented on March 21, 2013 in the House of Commons.
This is what Minister Flaherty has declared:
“As always, our Government’s top priority is jobs, growth and long-term prosperity,” said Minister Flaherty. “Those who took part in this year’s consultations can be assured that their ideas are being carefully considered as we develop Economic Action Plan 2013 in this difficult and uncertain global economic environment.” Source: http://www.actionplan.gc.ca/en/news/harper-government-announces-date-economic-action.
In the mean time, the Economic Action Plan 2013 paints a different image
“The Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital”
I wonder what is the meaning of ‘bail-in’? What are the ‘certain bank liabilities’? Would they get the regulatory capital via our saving accounts?
What if one morning we wake up reading that Canada adopted the new proposed European Parliament law stating that “Deposits below 100,000 euros are protected … deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in,” Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed the idea.
The European Commission has written the draft of the law, which now awaits approval from eurozone member states and the parliament on whether and when it can be implemented. It’s been reported, the law is planned to take effect in the beginning of 2015.
Interesting times to come.