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ARTICLE · 28 MARCH 2023

Mitigating Risk In The Canadian Banking Industry – And How It Differs From The US

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For many emerging technology companies, the collapse of Silicon Valley Bank has led to many questions around the differences between the Canadian and US banking systems.

CanadaFinance and Banking
Kathleen Butterfield
Kathleen Butterfield
Constantinos Ragas
Constantinos Ragas
Angela Onesi
Angela Onesi
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For many emerging technology companies, the collapse of Silicon Valley Bank has led to many questions around the differences between the Canadian and US banking systems. Are they really that significant? Do Canadian companies with deposits at Canadian financial institutions face the same risks as their American counterparts? We put together this primer to help answer some of those questions.

According to the Federal Deposit Insurance Corporation (FDIC), there have been 513 bank failures in the United States since 2009, including the two most recent US bank failures, Silicon Valley Bank and Signature Bank. Canada experienced no bank failures during that same time period. In Canada, the last deposit taking financial institution failure was in 1996 with the failure of Security Home Mortgage Corporation.

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