National Bank breathes new life into old TSE

For the first time in the 13 years since the Toronto Stock Exchange’s trading floor fell silent, traders are back. National Bank of Canada spent $12-million transforming part of the old exchange into a new trading floor, a big commitment that declares Toronto the centre of the bank’s growth plans for trading and investment banking. The new floor, which officially opens Wednesday is also an emblem of the importance of capital markets for National Bank.

Opinion:

The expression try something new can be applied to the way Canadian banks should do business because the National bank has become the engine of the bank’s profits from trading and increased their market share in  helping businesses such as selling bonds and stock to raise money for corporate clients. With the tremendous talent of bankers and traders in Toronto why not take a chance? yes I do understand that Canadian bank  depend on more traditional sources of generating  revenue such as mortgage interest and fees and it would be really tough to change the way the bank operates

Click on the image for full article:

Canadian banks raise rates as finance costs rise

Royal Bank of Canada raised mortgage rates for the second time in two weeks, setting the stage for another wave of hikes by major banks as they grapple with higher financing costs. “This is just the beginning,” said Canadian Imperial Bank of Commerce economist Benjamin Tal. “There is no reason to believe that this will stop at this point.” Indeed, by late Tuesday Bank of Nova Scotia had already followed suit, matching RBC’s 25 basis point hike on fixed-rate mortgages. Bankers at rival institutions were weighing their options. RBC kicked off the increases in March when it increased the price of fixed-rate five-year mortgages by 0.60 percentage points to 5.85 per cent; many rivals followed suit. Following Tuesday’s move, RBC and Scotiabank’s posted rates will be 6.10 per cent.

Opinion:

Increasing the rate for mortgage isn’t such a bad idea because  most homeowners wind up paying a rate that’s discounted from the posted rate. The actual rate that homeowners pays depends on a variety of factors including their financial situation, whether they use a mortgage broker, and how good they are at negotiating. Small companies such as ING Direct decided not to boost its rates because the bank use the Internet rather than an expensive branch network to reach customers,  therefore it creates lower costs  and have the ability  to charge less.

Click on image for full article:

TSX sharply lower as commodities retreat

The Toronto stock market was sharply lower Tuesday morning as oil prices backed off for a fifth session on demand concerns and a warning that prices have run up too high recently. The S&P/TSX composite index moved down 113.6 points to 12,035.1, led by losses in energy and mining stocks. The TSX Venture Exchange was down 21.76 points to 1,651.9. The May crude contract on the New York Mercantile Exchange was down $1.67 to US$82.67 a barrel even as the International Energy Agency revised slightly higher its 2010 forecast for global demand for oil. The TSX energy sector dropped 1.55 per cent as Suncor Energy (TSX:SU) declined 73 cents to C$34.45 while Canadian Oil Sands Trust (TSX:COS.UN) shed 78 cents to $31.44. Prices have headed lower since the middle of last week on data showing rising inventories.

Opinion:

Based on the retreat of all the commodities, Canada along with other countries are now headed in the recovery mode and is now waiting for everything to be back to normal.  As well the Canadian dollar show a slow declining  compare to the US dollar which is also a great news because now we can export more than we can import. With the increase of imports it affect the trading surplus.

Click on the image for full article:

No-interest MasterCard aims at devout Muslims

Zero interest and faith are not words one commonly associates with credit cards.  The card meets the requirements of Sharia law, which prohibits usury, by being prepaid and therefore interest free, said Kalair. “They do see it as a potential market…it is just a matter of timing,” said Kalair, adding four out of the big five banks sent representatives to a recent conference focusing on Islamic finance in Canada. Kalair was among the key organizers.  One of the common thing that alot of new immigrants from Middle Eastern or African countries  are asking him if Canadian banks offer Sharia-compliant products.

I think it’s a great idea to launch this new card because it the demand from the Islamic financial products is growing and with this new card it would tapped into a new market segment; it is evolutionary and it is driven by the need to meet demand and to respond to competition

Click on the image for full article:

Financial literacy leads to financial independence to newcomers New program teaches immigrants how to save, spend and invest

Back in Mumbai where she came from, Hazel D’Souza did most financial transactions in cash, so knew nothing about the hidden fees charged to her Canadian bank card. Soledad Gasilan, a native of Manila, experienced a similar financial fright after moving to Canada. Short of cash one time, she sought help from a Toronto payday loaner, thinking the service was a godsend. Little did Gasilan know she would end up paying 38 per cent interest for the quick money. Both new immigrants wish they could have enrolled sooner in a financial literacy program now offered at Toronto’s WoodGreen Community Service; the course helps newcomers manage their personal finances in this country and avoid the pitfalls associated with high-interest credit, service charges and other money matters.

Opinion:

I think it’s pretty smart that the WoodGreen is educating immigrants on how to be smart with their money, the the financial crisis hit because a lot of Canadian were spending and purchasing products that they couldn’t afford. And knowing that the Canadian population is made up with immigrants it would be beneficial for them to understand English and  be smart with their money; also to look out for frauds and being over charged on their credit crads

Click on the image for full article:

Banks could suffer if new regs restrict lending: Scotiabank

Scotiabank chief executive Rick Waugh says Canadian banks could be weakened by stricter international regulations that change the way financial institutions handle loans. The head of Canada’s most international bank told shareholders at a meeting in St. John’s, N.L. on Thursday proposed international lending rules threaten the foundation that helped strengthen the domestic banking sector in the face of the global credit crisis. “There is a real danger that Canada will perhaps — inadvertently — be significantly weakened by these reforms”

Opinion:

Canada banks should continue to do what their doing because despite the financial crisis Canadian economy wasn’t affected badly because of how we operated. If this new rule it could actually force the Canadian banks to securitize and sell off mortgages, even though they’ve traditionally been “a key factor” in manoeuvre through the crisis. As well banks are asking to pushing for Canada’s banking interests at the G20 summit, as well as at future financial stability. This is because it would allow us to be heard and ensure a level playing field for everyone;

Click on image for full article:



CIBC investing team has green-energy focus

CIBC has become the first major Canadian bank to form an investment team focused on green energy and clean technology markets, forging a path that industry experts say is likely to be followed by its big-bank rivals. Canada’s fifth-largest bank announced Tuesday that it has appointed Don Roberts, a former managing director and forestry analyst at CIBC World Markets Inc., as vice-chairman of the new wholesale banking team. Roberts told the Star the decision sends a clear signal to the market and internally at the bank that renewable energy and clean technologies are more than a passing investment fad.

Opinion:

It’s very cool how CIBC is trying out new things  by utilizing their resources to take full advantage of their opportunity. With this plan CIBC is planning to launch things like solar and wind projects to water technologies to biochemical production.

Click on image for full article:

Support grows for global tax on banks, but issue may prove awkward for Canada

The Germans are proposing that banks be required to pay $1.6 billion every year into an insurance fund that could be used to bail out the financial system in the event of another crisis.

The proposal was applauded by French Finance Minister Christine Lagarde, whose government wants to go even further by taxing hedge funds and insurers.

The German conversion has boosted the campaign by British Prime Minister Gordon Brown for the leaders of the world’s biggest economies to back a global levy at the G-20 summit, which will be held in Toronto June 26 to 27.

Yes the financial crisis hit our economy pretty badly but it wasn’t as bad as it hit Europe and America. After what we been through and learned from this crisis, the expression “better being safe than sorry” is something that should be in everyone mind. So I think it’s a great idea if we also apply the bank tax in our economic because the money it generates can be used as bailout money for the future.

Click picture for full article:



Cellphone banking is coming of age

You’re starting a two-week vacation far from home when you suddenly realize you left the mortgage payment on the kitchen table instead of mailing it on the way to the airport. Or perhaps you’re standing in the checkout line of a store, poised to make a debit card payment, but you can’t remember if you have enough money in your account to avoid expensive overdraft charges. It doesn’t happen often, just frequently enough to be annoying and costly. But cell phones may be the solution for a number of banking problems. In the past two weeks, two U.S. banks began nationwide services allowing customers to do many online banking tasks on their cell phones. As cell carriers improve Internet data connection speeds, more banks are looking to mobile handsets as another way for customers to avoid ever talking to a bank employee.

Opinion:

Technology has made everything very convenient to consumers; nothing has change since considering that now consumers are able to their banking online through their phones from checking balances to pay bills and transfer money on their handsets. In order for consumers to access this cellphone banking they need a smartphone that has internet access where they can download an apps or software;  another cool thing is that consumers don’t need to worry about strangers lurking for their bank information as well if consumers are to misplace their phone banks can shut down the mobile within minutes. The only downfall would be the security factor and the amount of shoulder surfers.

Click on image for full article:

BMO CEO calls on companies to innovate

“If ever there was a time that we – and I am speaking about both BMO and our customers – should feel compelled to expand our markets and to invest in productivity, it is now,” he said. “Given the relative strength in the economy, businesses have a rare opportunity, and clear incentives to step up innovation and their investment in leading edge equipment.”

Opinion:

I totally agree to what BMO CEO is saying because the world is constantly changing due to the advancements of technology which makes everything very convenient for consumers. We need to look into the future as to the pass or present because by staying in the present it’s not going to you anywhere

Click on the image for full story: