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  5. BMO: Hi 5i Regarding your answer to my earlier question about BMO. [Bank of Montreal]
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Q: Hi 5i
Regarding your answer to my earlier question about BMO....
"Overall, we would stay away from financial institutions with a weak capital base and questionable loan book quality. In a loss scenario, as we saw last year in the regional banking crisis, equity can at times be eroded quickly."
Is BMO in a situation where this is a similiar issue for them?
Asked by jim on February 01, 2024
5i Research Answer:

NO; we were specifically referencing NYCB. The US banking system is very different than Canada's, and more competitive. NYCB is only a $4B company, vs BMO at $91B. BMO's size allows it more funding capacity and choices, and a more diverse business line. There are risks, certainly, but not the same degree of risks as a small regional bank has, especially in regards to real estate exposure and availabilty of capital.