(Reuters) - Canada’s biggest non-bank lender Home Capital Group Inc (HCG.TO) disclosed data on Friday that showed the rate of withdrawals by depositors was slowing, a day after the company raised doubts about its ability to continue as a going concern.
Home Capital said its high-interest savings deposits were expected to have fallen to about C$125 million following the completion of Thursday’s settlements, down from a balance of C$128 million the day before.
Depositors have withdrawn nearly 94 percent of funds from Home Capital’s high-interest savings accounts since March 27, when the company terminated the employment of former Chief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.
Home Capital relies on deposits from savers 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 agreed last month to receive C$2 billion in emergency funding from the Healthcare of Ontario Pension Plan (HOOPP). It has so far drawn down C$1.4 billion from that facility.
Home Capital said on Friday its liquid assets stood at C$962 million at the end of Thursday, which, combined with the funds not drawn down on the HOOPP credit facility, gives it access to C$1.56 billion in available liquidity and credit capacity.
Reporting by Swetha Gopinath in Bengaluru; Editing by Saumyadeb Chakrabarty