TORONTO May 24 Canada's biggest non-bank lender
Home Capital Group Inc on Wednesday published data
showing that its high interest savings account balances declined
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$113.3 million on Tuesday, compared with
C$115 million the day before.
Its cashable GIC deposits, which holders can redeem before
their maturity date, rose to C$145 million on Tuesday, compared
with C$144 million the day before.
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$1.14 billion in
available liquidity and credit capacity on Tuesday, down from
C$1.46 billion the day before, having drawn down C$250 million
from a credit facility provided by the Healthcare of Ontario
Pension Plan to pay an outstanding C$325 million bond on its
maturity date of May 24.
(Reporting by Matt Scuffham)