Tuesday, February 22, 2022

Did Justin Trudeau’s Financial Crackdown Really Spark a Bank Run in Canada?


Despite rumors that Canada is experiencing a panic run on banks, little actual evidence of one appears to exist. There is, however, great concern that one could happen, based on the surge in searches about bank runs.

Whether people are closing their bank accounts en masse is unclear, but it’s worth pointing out, as some have, that fear of a bank run can actually cause a bank run (though most Canadians would have little fear from such an event because of deposit insurance). Moreover, it would hardly be a surprise if many Canadians are suddenly withdrawing their money from major banks. It’s basic cause and effect.