53.5% of the big 6 Canadian banks' total deposits, both domestically and internationally, are not held in Canadian dollars (CAD), with 22% of all domestic deposits being in foreign currencies.
As of October 31, 2023:
Total Deposits of the Big 6 Banks:
$5,480 Billion, marking a 432% growth over 20 years.
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Deposits Within Canada:
$2,546 Billion in CAD, accounting for 46.4% of total deposits.
$1,204 Billion in USD and other currencies, representing 22% of total deposits.
Deposits Outside Canada (Predominantly in the U.S.):
$1,730 Billion, making up 31.6% of total deposits.
All above figures are in CAD.
The growth in deposits in currencies other than CAD outside Canada reflects the continuous expansion of Canadian banks, especially in the U.S.
Potential reasons for the increase in foreign currency deposits within Canada include:
- 1. Businesses and individuals holding more USD and other currencies to hedge against FX market volatility.
- 2. A rise in the number of Canadian individuals and corporations that have exposure to international markets.
Sources:
1. Annual reports of 6 big Canadian banks for 2003, 2013 and 2023.
2. Financial data for banks by OSFI for Oct. 2003, Oct. 2013 and Oct. 20s
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