BUSINESS

Canadians hoarding record $75B in cash amid volatile markets: CIBC study

The Canadian Press Published Tuesday, January 26, 2016 8:29AM EST

Then-Bank of Canada Governor Mark Carney holds a new $100 bill as he unveils polymer bank notes in $50 and $100 denominations at the Bank of Canada in Ottawa on Monday, June 20, 2011. (Sean Kilpatrick/THE CANADIAN PRESS)

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TORONTO - Canadians are holding a record $75 billion in extra cash and continue to sock away money at a rate not seen in more than four years, according to a new report from CIBC World Markets.

Normally that extra money would be invested in equities, but the study found that nervousness over volatility in the markets has many Canadians reluctant to take the plunge.

And that, CIBC says, could end up costing them billions in lost investment returns.

According to the study, excess cash reserves held by Canadians have risen notably since the 2008 financial crisis.

In the past year alone, cash positions are estimated to have risen more than 11 per cent -- the fastest pace since early 2012 -- reaching $75 billion as of December 2015.

That figure represented almost 10 per cent of the total value of overall personal liquid assets in Canada.