Canada's Regulatory Regime Does Not Disadvantage U.S. Banks

President Trump recently made public statements that U.S. banks cannot do business in Canada, while Canadian banks "flood the U.S. market". A recent article in a leading U.S. newspaper (the Article) has also suggested that foreign banks are restricted in what they can do in Canada, that they are required to follow stringent banking rules, and that they are subject to restrictions on foreign ownership¹. In this bulletin, we attempt to address these misunderstandings relating to the ability of U.S. banks to operate in Canada and explain why U.S. banks do not have a competitive disadvantage in Canada from a regulatory perspective, relative to domestic Canadian banks.

What you need to know