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With the meltdown of US banks, I'm not surprised that the smaller Canadian banks have now become (relatively) bigger. Among the top 10 North American banks (based on market cap), three of them are Canadians: #3. Royal Bank of Canada (RY), #6. Toronto-Dominion Bank (TD) and # 8. Bank of Nova Scotia (BNS).

US banks suffered tens of billions in "toxic-asset" write-downs, dividend cuts, and the need for huge capital infusions. Are Canadian banks safe? I believe they might have a very good chance to survive and continue to provide secure dividends for the following reasons:

With all the talk about creating a “bad” bank in the U.S. to place non-performing or questionable assets, it seems appropriate for an investor to scour the world in search of possible “good” banks.

Filed under: Personal finance

Filed under: Earnings reports, Forecasts, Sears Holdings (SHLD), Toll Brothers (TOL), Smithfield Foods (SFD)

Last week, Bank of Montreal (NYSE: BMO), one of Canada's oldest and largest banks, reported growth in its fiscal fourth-quarter earnings. But it may be the only one that does, as at least two of the Canadian banks scheduled to report fourth-quarter numbers this week have already released preliminary results that warn of lower earnings due to debt write-downs and trading losses.