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| Subject: Canadian Credit Part 2 |
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Sharon: I like your idea of going through a credit union; we use one here and love it, versus the icky corporate bank we have our mortgage through.
Does anyone know if provincial governments have their own credit unions?
Good to also find out in advance that getting credit cards might be difficult at first; hopefully that´s one fewer surprises we´ll be faced with.
[18-07-2008,14:50]
[**.72.64.243]
wannbecanadian |
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(in reply to: Canadian Credit Part 2)
provincial credit unions... not that I know of. I use Vancity which predominantly serves Vancouver and region. I think they are slowly seeping into Alberta.
[18-07-2008,22:45]
[**.155.160.37]
Sharon |
(in reply to: Canadian Credit Part 2)
Not wanted to intrude on you guys´ discussion, I just wanted to add an observation on this topic.
I think the problem with the banking system in Canada is that it´s overly regulated and runs as a semi-monopoly. Since I worked at a bank in the U.S., I couldn´t figure out why such high fees, restrictions, and strict requirements when I arrived in Canada. I also couldn´t find the small corner bank to do business with - only branches of the huge national conglomerates.
Well, my local CICB branch was happy to explain why this is so. Canada allows only 6 major banks to operate nationally: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Canada Trust), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada.
Each of these has near identical fee structures, requirements, and regulations. So it doesn´t help much to "shop" for cheaper services between the major banks, because the fees are almost all the same.
The CIBC officer explained, unlike in the U.S., if someone tried to open a small mom-and-pop community bank, the government would shut it down. Just like with the health care system, private health care providers are prohibited and would be shut down immediately.
Although I fully support the public health care system there and understand why it doesn´t allow private practice, I´m not convinced that the exclusive monopolistic club of the "6" major banks is beneficial to the Canadian public in providing competitive pricing.
This is why you guys are interested in credit unions, as the only viable competitive solution to the large banks´ control of the banking system. When I mentioned all this to my bank colleagues over lunch the other day, they were aghast, and one said "just like in the old Soviet Union!".
[19-07-2008,23:57]
[**.47.173.225]
Richard |
(in reply to: Canadian Credit Part 2)
but our banks can´t go broke so I guess that is the trade off. You missed a couple. Hong Kong Bank of Canada, Citibank, and then the credit unions kick in.
It still helps to shop for rates and services.
Given the sub prime fiasco, I am feeling like our Soviet Union style of banking may be a good thing!!!!
[20-07-2008,00:33]
[**.155.160.37]
Sharon |
(in reply to: Canadian Credit Part 2)
Agree. A bit of regulation up there better than having the kind of banking meltdown down south (comrade!).
[20-07-2008,01:04]
[**.47.173.225]
Richard |
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