Solid reserves to withstand the impacts of the pandemic
The current situation with COVID-19 is evolving quickly and causing uncertainty throughout the world. We understand that some of you may have concerns.
Rest assured that Desjardins is stable and will protect your assets. We're a financial institution with a strong foundation that's capable of absorbing substantial losses during the economic slowdown caused by the COVID-19 pandemic.
How financial strength is measured
The main indicators of financial strength that credit rating agencies and regulatory bodies consider are capital and liquidity.
Capital is the financial cushion Desjardins maintains to support its operations. It's calculated using ratios for reserves (in dollars) and asset size. This is called the Tier 1 capital ratio.
A higher ratio (percentage) means stronger reserves. These reserves can be used to cope with unexpected events and support business growth, such as acquisitions and investments in technology.
Significant capital and liquidity reserves
Desjardins currently has more than $25 billion in capital, which ranks us among the strongest financial groups in the world.
Our Tier 1 capital ratio was 21.6% in 2019 (compared to 17.6% in 2018), which is very high. Most major Canadian banks maintain a ratio of about 12%.
Desjardins also surpasses regulatory thresholds for liquidity reserves.
120 years strong
Since it was founded in 1900, Desjardins has always used a responsible and cautious management approach. We also comply with Basel III international banking recommendations and our capital is among the best in the industry.
The main credit rating agencies (Moody's, Standard & Poor's, Fitch and DBRS) recognize our financial strength by giving us excellent credit ratings, which are similar to that of major international banks.
Our mission: Protecting members and clients
Canada and the rest of the world are going through a difficult period. The primary goal of maintaining very high ratios and capital is to protect you and ensure operational sustainability so we can support you during situations like the one we're experiencing now.
We're here for you and we're working hard on your behalf.