Small Canadian banks chase deposits to secure funding for troubled times

Canada’s small financial
institutions are waging a war for deposits, offering customers
higher interest rates as they try to shore up funding, despite a
drop in official interest rates to a decade-low.
While Canada’s biggest banks have a variety of funding
sources including wholesale markets, smaller players are more
dependant on sticky customer deposits and earnings, particularly
as credit spreads widen due to the economic fallout of the
coronavirus pandemic.