Courtesy: en.wikipedia.org/wiki/Banking_in_Canada
Banking in Canada
Banking in Canada is widely considered one of the safest banking systems in the world, ranking as the world’s soundest banking system for six consecutive years (2007-2013) according to reports by the World Economic Forum. Released in October 2010, Global Finance magazine put Royal Bank of Canada at number 10 among the world’s safest banks and Toronto-Dominion Bank at number 15. According to a report released by the office of the Minister of Finance in 2002 Canada’s banks, also called chartered banks, have over 8,000 branches and almost 18,000 automated banking machines (ATMs) across the country. The report goes on to state “Canada has the highest number of ATMs per capita in the world and benefits from the highest penetration levels of electronic channels such as debit cards, Internet banking and telephone banking”. More recent data published by the World Bank shows that as of 2017 Canada has 227.82 ATMs per 100,000 adults, which ranks the country third worldwide.
“Big Five” Banks
While most Canadian banks operate only within Canada, the Big Five banks are best described as Canadian multinational financial conglomerates that each have a large Canadian banking division. In fiscal 2007, RBC’s Canadian segment called “Personal Financial Services” (the segment most related to what was traditionally thought of as retail banking) had revenue of only CAD$5,082 million (or 22.6%) of a total revenue of CAD$22,462 million. Canadian retail operations of the Big Five comprise other activities that do not need to be operated from a regulated bank. These other activities include mutual funds, insurance, credit cards, and brokerage activities. In addition, they have large international subsidiaries. The Canadian banking operations of the Big Five are largely conducted out of each parent company, unlike U.S. banks that use a holding company structure to hold their primary retail banking subsidiaries.
Brands used by the Big Five by major financial service
| Royal Bank of Canada | Toronto-Dominion Bank | Bank of Nova Scotia | Bank of Montreal | Canadian Imperial Bank of Commerce |
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