Canadian Banking Industry

November 9, 2011 · Posted in Mortgages · Comment 

The big five Canadian banks all of a long history in that country and provide a wide range of services to both individuals and companies. The banks have some features in common. They all have excellent records for customer services, operate in multiple countries, and have adapted to the needs of their customers as technology has grown.

The largest bank and largest company in Canada is the Royal Bank of Canada (RBC). This bank ranks in the first 100 on the Forbes Global 2000 list with offices located in over 30 countries. The bank focuses on the needs of individuals, businesses, and governmental groups with equal attention. An entrepreneur will find that there are multiple resources provided by RBC to help them plan a solid financial strategy when they are growing their business. The bank also provides information on ways to effectively expand and grow a business to gain the revenue that is desired quickly.

RBC offers a wide range of services that include provision of insurance products. An individual can easily assure repayment of a loan with the addition of loan insurance. Travel and home owners insurance are also offered to customers of the bank. In addition, a wealth management division gives an individual the opportunity to access financial advisors who are well trained and adept at matching customer needs with the best investment and savings opportunities available.

The 2nd largest bank in Canada is the Toronto-Dominion Bank Financial Group (TD Bank). This bank meets the needs of over 14 million customers around the world and has distinct departments that address the needs of customers. When an individual needs to address a specific issue regarding their country, TD has advisors on hand who are knowledgeable in the International laws pertaining to banking practices in that country. TD has a history of being traded on both the New York and Toronto Stock Exchange and has proven a reliable and solid investment.

As one of the world’s premier online financial service providers, TD current has over 6 million clients that conduct the majority of their banking online. As technological advances and abilities have occurred, TD has adapted their practices to meet the needs of busy clients who are often traveling. In addition to the online banking, TD also offers a wide range of flexible financing options to companies, individuals, and commercial clients that is highly competitive. It is one of the largest direct-response providers of home and auto insurance in the country.

Bank of Nova Scotia (Scotia Bank), ranks 3rd among the big five banks. The bank has a dynamic presence in Latin America, Asia and the Caribbean and has 3 divisions within the infrastructure to address the unique needs of their customers throughout the world.

There are more than 7 million corporate and retail clients being served in the domestic and international banking divisions in over 40 countries. The Capital Market and Investment branch provides a multitude of products to corporate, governmental and institutional clients. Individuals and businesses will find that the wealth management assistance provided by Scotia Bank is unparalleled in creating thriving and dynamic portfolios on the world market.

The fourth big five bank is the CIBC, or Canadian Imperial Bank of Commerce. This bank, headquartered in Toronto provides services to Canada, Asia, the US and the Caribbean. Most notably, CIBC was the first bank to introduce ATMs in Canada and have maintained a highly competitive loan structure relative to interest rates. Their diligence in maintaining a foothold in the technological advancement of banking has included the introduction of a mobile banking system that allows individual to conduct their banking from any medium that uses the Internet including portable PDAs and phones.

The final noteworthy big five bank is the Bank of Montreal, BMO. Since 1817, BMO has been serving clients and adapting their infrastructure and technology to meet the needs of their growing clientele. This dynamic organization provides a wide range of services to customers that include wealth management services through the BMO-Nesbitt Burns division. This division also offers several insurance products that are specifically designed to protect individual and corporate assets.

The BMO Financial group is divided into three divisions that provide personal and commercial banking services, private client group packages, and BMO capital markets to clients. The services provided include automatic payment structures, lending teams, and investment groups that can provide details and information regarding the best methods for attaining the objective and goals for an individual or company.

TD Securities is the investment arm of TD bank.

Canadian Banks

October 30, 2011 · Posted in Savings · Comment 

The first Canadian bank – the Bank of Montreal was established in 1817, and this marked the beginning of the modern Canadian banking system. In the following years many new financial institutions opened for business. These new banks were issuing their own banknotes. The amendment done to the British North America Act in 1866, allowed both provincial and local governments to issue notes. The banknotes issued by the private Canadian banks were phased out, once the Canadian dollar was introduced in 1871. In 1935 the Canada established its own central bank, the Bank of Canada.

The large banks are referred to as the ‘Big Five’: Bank of Montreal, Canadian Imperial Bank of Commerce, Toronto Dominion, Bank of Nova Scotia, and Royal Bank of Canada. Other banks of smaller size represent the second tier banks. At present, Canadian banks boost more than 8000 branches at home and abroad.

There are 2 regulatory bodies overseeing the Canadian banking industry – the Financial Consumer Agency of Canada, and the Office of the Superintendent of Financial Issues. The Bank Act of Canada is frequently updated to ensure that the banking regulations are in sync with the realities in the Canadian financial world. Many worldwide organizations, including IMF, regard Canada’s banking system very highly.

Canada is one of the few developed countries in the world where no bank bailouts were needed. Canadian banks are the clear winners compared to their Western counterparts. TD Bank has seen tremendous growth in the last few years, jumping from the 15th largest North American bank in 2007, to # 5 in 2008. Scotiabank has also grown through acquisitions, buying the Chilean Banco de Desarollo in 2007.

The majority of Canadians consider that good management is in place with regard to their banking system. They are confident that deposits are kept safe and make use of reasonably priced credit options.

The Canadian banking industry stability is not just something that economists around the world made up, but is supported by various statistics. The “Big Five” Canadian banks are one of the top employers in the country, employing over 250,000 Canadians. The banks also contribute to the economic growth by providing much-needed credit to hundreds of thousands of small and medium Canadian businesses.

Learn more about the savings accounts in Canada and use the checking account guide.