May 19 Canada’s biggest non-bank lender
Home Capital Group Inc on Friday published data showing
that its high interest savings account balances declined on
Home Capital has been struggling to finance its assets as
its high interest deposit account balances have fallen by more
than 90 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 rate savings deposit
balances stood at C$116.2 million ($88.4 million) on Thursday,
compared with C$120.2 million the day before.
Its cashable GIC deposits, which holders can redeem before
their maturity date, fell to C$144 million on Thursday, compared
with C$146 million a day earlier.
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$1.47 billion in
available liquidity and credit capacity on Thursday, unchanged
from the previous day.
(Reporting by Matt Scuffham)