Find Banking and Financial Services expertise in Canada
Canada is a strong financial centre. In fact, for five years in a row (2008–12) the World Economic Forum ranked Canada’s banking system as the world’s soundest – a fact indicative of the prudential management of its banks. Canadian banks also borrow at particularly low rates, something which might contribute to their low-risk profile. They are well-diversified organisations, with investment banks anchored by solid deposit-taking institutions. Canada’s mature, world-leading banking sector at one point attracted CAD54 (US$57) billion in foreign investment as a whole in a single year (2006). The host of globally competitive banks based in Canada includes the ‘big six’ – Royal Bank of Canada, TD Canada Trust, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Commerce – which hold more than 80% of total bank assets, along with international financial firms such as BNP Paribas and CITCO. The impact of the industry is significant: financial services contributed $55.5 billion to the Canada’s economy and employed 274,000 people in 2011. The strength of Canada’s financial system enabled its continuing vigour in the face of the challenging global environment (2012). As of 2012 Canadian markets saw relative stability, whilst banks continued to have good access to wholesale funding markets.
Regulation of Financial Services
A comprehensive and extensive regulatory framework underpins this sector, providing a favourable environment for relevant financial intermediaries and safety nets to the industry. The Office of the Superintendent of Financial Institutions (OSFI) oversees regulation, with the Financial Consumer Agency of Canada (FCAC) responsible for consumer matters. Every five years a review and update of the Bank Act is undertaken to ensure the regulatory structure remains up-to-date with changes in the industry. The Bank of Canada provides central banking services to sustain a stable and efficient financial system, including various liquidity facilities, overseeing key domestic clearing and settlement systems, conducting and publishing analyses and research, and collaborating with various domestic and international policy-making bodies to develop policy. The Bank’s schemes work in conjunction with the contributions of other federal and provincial agencies. These bring their own expertise to sustaining the financial welfare of Canada, working within their own mandates.
Development of Financial Services
The World Bank Ease of Doing Business Index ranked Canada 24th in the world for getting credit, placing it in an equivalent position to Germany, Japan, Switzerland and Denmark. In relation to protecting investors it ranked a very prominent 5th place, coming below only New Zealand in regards to high income countries. The strength and maturity of its financial sector was also reflected in the World Economic Forum’s Global Competitiveness Report (2012-13) which rated it 5th in the world for availability of financial services. It was ranked 16th for affordability of financial services, placing it above other big players such as Germany (26th), Australia (36th), New Zealand (20th). For financing through the local market it placed 10th and for ease of access to loans it placed 18th, coming above Australia and the United States.
|Banking and Financial Services organisations in Canada|
|Bank of Canada||
|Canadian Western Bank||
|Citizens Bank of Canada||
|Manulife Bank of Canada||