In Canada, banks represent the banking system, which is still run the old-fashioned way. These have been affected by changing economic and political situations for a while, and they still are a result of the reduction in government financing and aid.
Moreover, in Canada, banks stand for the banking system which continues to operate traditionally. The essential financial system of Canada is renowned for its effectiveness and efficiency throughout the world. The nation is currently home to some of the biggest international banks in the globe. The excellent financial system in Canada is made possible by both responsible government actions and the work of committed organisations.
Read here to know which are the top 10 banks in Canada – for residents or for international students going to study in Canada and aiming to open an account in the country.
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Structure of Banks in Canada
It’s great to know that the banking sector in Canada is robust, even with relatively lesser government support. The classification we’ve mentioned covers various aspects of the financial industry in Canada. Here’s a brief overview of each category:
Chartered Banks: Chartered banks are the major players in Canada’s banking industry. These banks are authorized and regulated by the federal government through the Office of the Superintendent of Financial Institutions (OSFI). They offer a wide range of banking services, including retail banking, corporate banking, investment services, and more.
The Cooperative Credit Movement: This refers to credit unions and caisses populaires, which are cooperative financial institutions that are owned and operated by their members. They provide similar banking services as traditional banks, focusing on serving local communities and their members’ financial needs.
Life Insurance Companies: While primarily known for providing life insurance, some of these companies may also offer financial products and services, including savings and investment options.
Trust and Loan Companies: Trust and loan companies are financial institutions that offer a variety of financial services, including trust services, loans, and investment management. Federal or provincial authorities regulate them.
Security Dealers: Security dealers are involved in the buying, selling, and trading of financial securities such as stocks, bonds, and other investment products. While not strictly banking institutions, they play a significant role in the overall financial landscape.
It’s interesting to note the presence of both domestic and foreign banks in Canada’s banking sector. The fact that foreign banks operate through subsidiaries and branches indicates the global nature of Canada’s financial industry and its attractiveness to international players.
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Top 10 Banks in Canada
Canada’s banking sector routinely wins praise and acclaim on a global scale. Canada’s banking system was routinely ranked as the most secure in the world from 2007 to 2013 by a reputable independent financial institution.
Financial organizations that have a substantial impact on the economy of Canada make up the top 10 banks. These banks offer various financial services to private citizens, public entities, and enterprises. A brief description of each of the top 10 banks is provided below:
1. Royal Bank of Canada (RBC): This bank was founded in 1864 in Halifax, Nova Scotia. Additionally, has the head office in Montreal and headquarters in Toronto. Moreover, RBC is the largest bank in Canada and offers a comprehensive range of financial services, including personal and commercial banking, wealth management, insurance, and investment banking.
2. Toronto-Dominion Bank (TD Bank): The Dominion Bank, was founded in 1855 and 1869; respectively. It is one of two Big Five banks of Canada founded in Toronto. TD Bank is known majorly for its retail banking services.
3. Bank of Nova Scotia (Scotiabank): Scotiabank is a multinational bank that was founded in 1832 in Halifax, Nova Scotia, where it was headquartered until relocating to Toronto in 1900. This bank provides a wide range of banking and financial services
4. Bank of Montreal (BMO): Bank of Montreal, Canada was founded in 1817. This bank is commonly known by the symbol BMO and is the third-largest bank in Canada by market capitalization.
5. Canadian Imperial Bank of Commerce (CIBC): CIBC is a Canadian multinational banking and financial services. This was founded in the year 1961, The Canadian Imperial Bank of Commerce was founded with a merger of the Canadian Bank of Commerce (founded in 1867) and the Imperial Bank of Canada (founded in 1873).
6. National Bank of Canada: The National Bank is the sixth largest Commercial bank in Canada. National Bank is the largest bank in Quebec and the second-largest financial institution in the province.
7. Desjardins Group: Desjardins is a cooperative financial group the largest federation of credit unions in North America. This was founded in the year 1990 in Quebec.
8. HBC Bank Canada: Hongkong Bank of Canada (HBC), is a Canadian chartered bank and the Canadian subsidiary of British multinational banking was founded in the year 1981. HBC is the seventh largest bank in Canada.
9. Laurentian Bank of Canada: Laurentian Bank is the Schedule 1 Bank operating primarily in the province of Quebec. This was founded in the year 1846. It offers personal and commercial banking services, as well as investment solutions, primarily in Quebec.
10. ATB Financial: ATB Financial is a financial institution and Crown corporation wholly owned by the province of Alberta, the only province in Canada with such a financial institution under its exclusive ownership. This was founded in 1938. It is a provincially owned financial institution in Alberta.
These top 10 banks are essential pillars of Canada’s financial system, contributing to economic growth, and stability, and providing various financial products and services to meet the needs of individuals, businesses, and the government.
Also Read: A GUIDE TO OPEN INTERNATIONAL STUDENT BANK ACCOUNT IN CANADA
FAQs
Ans. The Big Five Banks (or Big 5 Banks) are Canada’s top five financial institutions and consist of TD Bank, RBC Royal Bank, BMO Bank of Montreal, CIBC, and Scotiabank.
Ans. SBI has millions of customers and is renowned for offering the best financial services in India. It should come as no surprise that this bank is well-liked by Indians moving to Canada given that it has thousands of branches and hundreds of staff in India.
Ans. According to capitalisation, Toronto-Dominion Bank (TSX: TD) is the “safest” Canadian bank. Its current common equity tier-one (CET1) ratio is 16.2%. Cash plus equity divided by all risk-weighted assets yields the CET1 ratio. It denotes that TD has a high proportion of high-quality, low-risk assets to its overall assets.
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