On other hand, this is such a double standard. In China, I couldn't even get a credit card because I don't have a Chinese ID number even though I had a job for 9 years + lots of money in their bank.
> The only other option is not to give them loans at all even if they put up a high down payment.
Yeah, I don't see the problem with this.
You can get a loan with no credit score if you have the assets.
However -- I do fail to see the point on why you would put up cash as collateral for a loan. Just to retain liquidity?
I get why you would want to put up securities to get a loan, that is a no brainer.
From a micro perspective, yes. But a giant book of business relying on this model can easily expose unintended overleveraging in a sector that can hurt valuations regionally, such as China-US relations, more attractive offers elsewhere, etc. It isn't that simple.
Canada doesn't really have a specialized national police force - the RCMP's primary function is to be beat cops in rural areas of the country - and it has no equivalent of the SEC (the Supreme Court ruled the federal government doesn't have the authority to set one up). So the highly specialized capabilities needed to investigate trans-national white-collar crime just isn't there. It's hard to take an agency that primarily writes traffic tickets in Yellowknife and task it with tracing sophisticated international money laundering.
(I used to be chief compliance officer and "ultimate designated person" of a registered dealer.)
I don't get it when people point out double standards when living in different countries as if they should be equivalent in both places.
Just because X country offers Y to Z people, why is it normal to expect another country to offer the same thing? Different country, different laws for different people right?
I do like that China at least tries to reciprocate on some things, like 10 year visa durations.
When I moved to the US from Canada, the banks couldn't access my credit file in Canada -- even though they use the same fucking credit bureaus in both countries! I had to give AT&T $500 cash just to get a cell phone account, and another $500 cash so my wife could have an account too... even though we had already bought our iPhones in cash -- we had no debt with AT&T. They literally needed a $500 deposit in case we ran up some crazy bill with long distance calling (text and data were unlimited).
With a lot of work, we were finally able to get a mortgage even though we were putting about 45% down. The bank issued us kind of trail credit card that they issue all immigrants. I ran into another consultant at a client site and we had lunch together. He was fresh off the boat from India and when he pulled out his credit card we laughed because I held up the same immigrant Visa card. Easier than China, ya... but it's pretty silly here too. How equifax here can't get my stellar credit history from equifax Canada blows my mind.
That seems like a perfectly reasonable position to take - don’t give loans to people who don’t qualify for them.
That is until there's a recession and all house prices tank with banks selling at same time. But those previous employees? Made redundant in downturn.
Who's fault is it for causing these losses?
China would likely prefer that it be as hard for expat Chinese to get financial access given the sheer amount of capital illicitly flowing out.
However, the Vancouvers of the world want that money much like London wants Russian money. So they follow a no questions asked policy.
That's an excellent position to take.
Canada also has a problem with undeclared foreign income.
Paper work isn't even standardized, you aren't getting a W2, it will just be random stuff you collect to prove your income. And even then, the IRS still doesn't care where your money actually came from, just that it is all reported.
This is exactly what happens - it's not easy to get a mortgage without a permanent status (that 0% of foreign students would have). A crazy downpayment would be requested upfront.