Big-Bank Profits vs. Your Wallet (and why a member-owned DAO is different)

Canada’s biggest banks just made billions in three months again. If they can “beat expectations” while families and small businesses struggle, maybe the system is working exactly as designed… just not for you.

The simple scoreboard (last quarter)

1. RBC: $5.4B profit
   

2. TD: $3.3B profit
   

3. Scotiabank: $2.5B profit
   

4. BMO: $2.3B profit
   

5. CIBC: $2.1B profit
   

6. National Bank: $1.1B profit
   

What that really means (plain English)

• They kept less “rainy-day” money aside:

Banks set aside a cushion called “provisions for credit losses” (PCL). Lower cushion = higher profit now. Good for headlines, not great for safety.

• You pay more, earn less:

Higher borrowing costs and everyday fees rise faster than the interest paid on deposits. The spread is their business model.

• The story is managed:

  Phrases like “beat expectations” and “resilient performance” sell a success narrative even when households and SMBs feel squeezed.

How banks squeeze value (3 levers)

1. Pricing power: Raise lending rates and fees faster than deposit rates.
   

2. Accounting choices: Trim loss cushions to lift earnings this quarter.
   

3. Complexity: Layers of products and fine print make real costs hard to see.

   
   

What a member-owned DAO would do differently

Goal: Build a financial network that serves members first and proves it in public.

• Proof-of-Reserves, daily:  Publish on-chain wallet balances and coverage ratios. Anyone can verify assets exceed member balances. No black box.
  

• Simple, flat fees:  A posted member tariff. Surplus goes back to members as dividends or rate reductions.
  

• Community credit, not just capital markets:  Allocate a fixed slice of treasury to SMB loans and local renewable-energy projects. Revenues flow back through smart contracts (e.g., tokenized kWh payouts).
  

• Reg-ready by design:  Follow Canada’s emerging rules for digital assets and custody from day one (segregated custody, audits, insurance).
  

• Social Economic Investment Program:  As membership grows nationwide, earmark a share of net earnings for local initiatives mental-health support, poverty reduction, skills training, funded transparently via smart contracts and member votes. The institution you own doesn’t just safeguard savings; it reinvests back into the communities it serves.
  

A 30-second example

• You and others fund a community solar project.
  

• The project sells power; revenue is tracked on-chain.
  

• Smart contracts pay lenders and energy-token holders automatically, monthly.
  

• Dashboards show coverage ratio, reserves, and payouts every day.
  

Bottom line

Big-bank profits aren’t a mystery. They’re the result of a system optimized for shareholders. A member-owned, proof-of-reserves DAO flips the script: transparent reserves, simple pricing, and real capital flowing into local businesses and clean energy with the upside returning to the people who fund it.

Author: Chad R Johnston