The original study provided lessons regarding the collection of data from the banking sector. In order to insure consistent and comparable data across the eight banks of Clinton County, a new methodology was employed. For the replication study, banks were requested to provide data on the total average collected balances for Calendar Year 1996 in term and demand accounts of Canadian individuals, Canadian-owned businesses in and outside of Clinton County, International border businesses, and Public Border-related agencies. A term account refers to certificates of deposit and other accounts which cannot be freely drawn upon prior to completion of a minimum time period. Demand accounts are savings and checking accounts which may be drawn upon at any time.

and Public Border-related Agencies. 1994 and 1996

Percentages do not sum to 100% due to rounding error.

Between 1994 and 1996, there was a significant decrease in bank deposits by Canadian individuals and Canadian-owned businesses not located in Clinton County. The approximately 50% decrease in these two client groups is not explained by the alternative methodologies employed in the data collection.

A direct causal reason for the decrease is not known. Opinions expressed by Clinton County bankers and the Director of the Center for the Study of Canada at SUNY Plattsburgh vary. In part the decrease may be attributable to: 1) a change in the U.S.-Canada Tax Protocol which may limit previous tax benefits for Canadians investing funds in U.S. banks; 2) the original study reflected an apprehensive period just prior to the recent Quebec secession vote and afterward Canadians returned their funds to Canadian banks; 3) Canadians currently pref to invest in the U.S. stock market and not bank certificates of deposit; 4) U.S. banks have established more branches within Canada in the past year, removing the need to deposit funds in Clinton County banks.

This might help to explain the situation of individual Canadian deposits and Canadian-owned businesses not located in Clinton County. The 64% increase in deposits of Canadian-owned businesses located within Clinton County is consistent with the expansion of the number of COB’s evidenced since 1994.

Both the 1994 and 1996 data indicate that Canadian individuals represent over 80% of the total Canadian and border related deposits. However, the share attributed to Canadian individuals decreased by 6% from 1994 to 1996. Conversely, the share of total Canadian and border-related deposits attributed to Canadian-owned businesses located within Clinton County increased significantly from 4% to 11% in the same period.

Sixty-seven percent of all Canadian and border-related bank deposits in 1996 were in term accounts for short to long-term investment. Of these term deposits, 95% are held by Canadian individuals. Canadian individuals also held 47% of the Canadian and border-related demand account deposits. Canadian-owned businesses both located within and outside of Clinton County held 48% of the demand deposits.

Methodological Notes:

Eight banking institutions of Clinton County were surveyed by mail for this report. All of the banks responded to the query for information regarding deposits by Canadian interests, international border companies and public border-related agencies. For the replication study, all of the banks were able to provide total average collected balances for the 1996 Calendar Year segregated by term vs. demand accounts. In the original study, two of the banks were unable to provide data for the 1994 fiscal year, but rather provided data for the 1995 calendar year.

Recommendations for Replication:

The methodology now established requesting aggregate average collected balances for term and demand accounts for the calendar year should be followed for future replications. In this manner all data will be comparable for the sector as a whole.