Bill Holter’s Commentary
A heads up for our Canadian friends, what’s in your bank?
Canadian Banks Derivatives Expanded By A Trillion in 2016
March 28, 2017
Since we reported on the total notional derivatives exposures of the big 5 Canadian banks in Q1 2016, the banks have collectively continued to expand their derivatives portfolios.
The following table summarizes the total exposures of the Big 5 based on the 2016 Q4 report from the Office of the Superintendent of Financial Institutions (OSFI).
Whereas Scotiabank has seen its derivatives books reduced significantly and BMO’s reduced somewhat, the increase in exposure by the other 3 banks way more than offset the shrinkages at Scotiabank and BMO. Particularly of note is TD Bank which increased its notional by a whopping $1.57 trillion (that right, $1,574 billion, 21% increase since Q1).