I'm not sure where you're tripping up.   I might understand your critique better if you quoted the lines that you're speaking about.  Let me try again.
Depositors have been reluctant to purchase Home Capital's GICs and short term deposits at the rate offered because of the perceived risk in the mortgage book.  If the risk was priced in properly, the GICs would be offered at a higher rate, and given the spread Home Capital requires, they'd also lend at a higher rate.  Thus, they would be more solvent.  A bank is only as solvent as the perceived confidence of its depositors.