Por: Victoria Andrea Anillo Campos
Redacção e marketing de conteúdos
The banking and financial system in Canada is globally recognized for its stability, integrity, and trustworthiness. In this article from Americanos Magazine, we will explore the key features of the Canadian financial system, from its regulatory institutions to the services and products it offers to residents and businesses.
With a solid infrastructure and strong regulations, Canada has established a reliable financial environment that supports economic growth and financial security.
1. Financial institutions:
The Canadian banking system is composed of a network of solid and secure financial institutions, including commercial banks, credit unions, and insurance companies. There are nearly 90 banks, around 6,000 bank branches, and over 18,600 bank-owned ATMs, the highest per capita in the world.
The big banks in Canada, known as the “Big Five”, play a crucial role in the economy and offer a wide range of financial products and services, such as savings accounts, loans, credit cards, and investment services.
- Royal Bank of Canada (RBC): It is the largest bank in Canada by total assets and market capitalization. RBC helps newcomers in many ways: it offers a bank account with no monthly fee for one year, two free international money transfers per month for the first six months, and loans for cars, credit cards, and mortgages without a credit history.
- Toronto-Dominion Bank (TD): TD offers immigrants a free service for 6 months, unlimited transactions on the checking account (withdrawals, bill payments, etc.), and free money transfers through the Interac e-Transfer system.
- Scotiabank: As part of Scotiabank’s StartRight® program, immigrants do not have to pay monthly maintenance fees on their Scotia One™ checking account for one year. The bank also offers unlimited transfers and electronic transactions, a free safety deposit box for one year, and a credit card without a credit history.
- Bank of Montreal (BMO): BMO is the oldest bank in Canada. Its NewStart™ program offers immigrants who have arrived in the country in the last five years 12 months of free banking with no minimum balance, as well as unlimited checking account, unlimited electronic transfers through Interac, and a free safety deposit box.
- Canadian Imperial Bank of Commerce (CIBC): At CIBC, newly arrived immigrants will receive a bank account with no monthly fee for the first year, a credit card and an auto loan without a credit history, unlimited Interac electronic transfers, and up to 55 CAD cash back when renting a safety deposit box.
2. Regulation and supervision:
The stability of the financial system in Canada is largely due to its strong regulatory and supervisory framework. The Office of the Superintendent of Financial Institutions (OSFI) is the body responsible for overseeing and regulating financial institutions, ensuring they meet solvency, liquidity, and risk management requirements. This has helped prevent financial crises and maintain the trust of clients and investors in the Canadian financial system.
3. Innovation and financial technology.
Canada is a leading country in the adoption of financial technology (fintech), which has driven innovation and efficiency in the financial sector. Fintech companies offer a wide range of services, such as mobile payments, peer-to-peer lending, and automated investment management. Additionally, the Canadian government has promoted policies to foster competition and financial inclusion, allowing consumers and businesses to access more accessible and personalized financial services.
4. Consumer protection.
The banking and financial system in Canada is supported by strong consumer protection measures. The Financial Consumer Agency of Canada (FCAC) oversees and regulates the business practices of financial institutions to ensure that consumers are protected and their rights are respected. Additionally, there are laws and regulations in place to guarantee the privacy of customers’ financial information.
The banking and financial system in Canada stands out for its stability, strong regulation, innovation, and consumer protection. Confidence in the Canadian financial system has been crucial for the country’s economic growth and the financial security of its residents and businesses.
With a robust infrastructure and a continuous pursuit of excellence, Canada positions itself as a benchmark in the international financial sector.