Current Issues In The Canadian Financial Sector

Canada remains subject to a number of confusing, and perhaps conflicting, political agendas which limits the necessary comprehensive structural changes to its financial intermediaries and capital markets. The financial institution merger question remains in limbo, with most of the likely players reluctant to put their hand up in the absence of an announced change permitting mergers among banks and between different kinds of financial institutions. A similar issue is being debated in the communications sphere, with Canada's largest telecommunications company Bell Canada being subject to an auction process in which foreign private equity firms are significant participants. Additional policy questions arise from the need for simplified securities regulation and accommodation of cooperative financial institutions.