May 16 Canada’s biggest non-bank lender
Home Capital Group Inc on Tuesday published data
showing that its deposit balances were continuing to decline.
Home Capital has been struggling to finance its assets as
its high interest deposit accounts have fallen by 94 percent
since March 27, when the company terminated the employment of
former Chief Executive Martin Reid.
The withdrawals accelerated after April 19, when Canada’s
biggest securities regulator, the Ontario Securities Commission,
accused Home Capital of making misleading statements to
investors about its mortgage underwriting business. The company
has said the accusations are without merit.
Home Capital said its high-interest savings deposit balances
stood at C$120.9 million ($88.9 million) on Monday, compared
with C$C$125.4 last Friday.
Its cashable guaranteed income certificate deposits (GICs),
which holders can redeem before their maturity date, fell to
C$160 million on Monday from C$167 million last Friday.
The company last Friday said uncertainty around future
funding had cast doubt about whether it could continue as a
Home Capital relies on deposits from savers and GICs to fund
its lending to borrowers, such as self-employed workers or
newcomers to Canada, who may not meet the strict criteria of the
country’s biggest banks.
The company said it had access to C$1.48 billion in
available liquidity and credit capacity on Monday, compared with
C$1.51 billion last Friday.
($1 = 1.3600 Canadian dollars)
(Reporting by Matt Scuffham)