Donald Trump said the US banks cannot act in Canada, shouting in his social truth, but the claim is false.
“America’s banks can’t do business in Canada. Can you believe that?” He told a room of journalists. Trump has recently mentioned the Canadian banking sector in terms of trading tensions, suggesting that it has another bone to select the rate between the two countries as a conflict.
The US financial institutions have operations in Canada. 2. In category (foreign property with Canada subsidiaries), they include about 600 employees in this side of the border, and Citibank has been Canada in Canada for more than a century.
So what could US president mean?
“It’s somewhat too much excessive.
Regulations, Loyal customers dissolve US banks
Foreign banks may not want to go to Canada because of hard competition. The Canadian bank industry is very concentrated with its six large banks – Royal Bank, the Montreal Bank, Scotiabank, Cibc and National Bank – a majority of the most active banking banks.
Large six are the wide and strong network of loyal customers already in the home market, more difficult to get from here to get there. “It’s not a very exciting market for a big US bank,” Kryzanowski said.
“If a foreign bank enters and they want to create a network, many retail customers need to be changed.”
Canada six drop 1. Schedule below the category – meaning they need to be Canadian organizations that take deposits. Any American bank wanted to buy a major Canadian bank will face these American banks and other restrictions.
Even smaller 1. Also the property limits of the bank owner, Kryzanowski said that 35 percent of the bank must be in public. “Usually, if an American bank will go to Canada, they want to have full control.”
There are arguments to oppose the regulations of the Canadian bank regulations, added.
Canadian banks known for stability
The regulations complicate foreign competition to compete here, but the Canadian bank also has reputed the stability.
“The Bank of Canada Bank and the U.S. Bank condition is a great difference between household stability buffer,” Jie Zhang said, Financial Professor of Peterborough University.
Buffer – Types of funds that may be ignored by Canadian banks in case of financial emergencies. According to Zhang, our 2008 financial crisis and Covid-19 pandemic hurt by our banking organizations contributed.
Canadian banks must ignore the higher percentage of these funds than US banks, and the cost of compliance could be another factor in Canada.
The Canadian Bankers Association proclaimed on Monday, 16 million-based subsidiaries and branches in the USA in Canada today has about $ 113 million.
“Canada has a strong and competitive banking sector, made up of home and foreign banks,” published in the Association’s X account. “These banks specialize in financial services, including corporate and commercial loans, treasure services, credit card products, investment banking and mortgage financing.
“They offer not only customers with cross-border business activities, but also the Canadian home retail market. The US banks form half of all Canadian foreign banks.”
2025-02-04 18:58:00
