TORONTO (Reuters) - Canada’s biggest non-bank lender Home Capital Group Inc (HCG.TO) on Wednesday published data showing that its high interest savings account balances declined on Tuesday.
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. [L1N1IP2EZ]
Reporting by Matt Scuffham