DoF Consultation: Financial Competition in Canada

Consultation | Feb 1, 2024

Canada Seeks Public Input on Enhancing Financial Sector Competition

The Canadian government is consulting on strengthening competition in the financial sector. This consultation seeks input on potential reforms to improve competition, consumer choice, and access to financial services in Canada. It aims to address the evolving financial landscape and ensure a competitive, innovative, and consumer-focused financial sector. Stakeholders are encouraged to contribute their views and ideas.

Background

The process for bank mergers and acquisitions in Canada involves the Minister of Finance's approval under the Bank Act. This act allows the Minister to consider various factors, including the interests of the Canadian financial system.

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Decisions are guided by assessments from the Office of the Superintendent of Financial Institutions (OSFI) and reviews by the Competition Bureau. The Department of Finance is now exploring how to improve this process to enhance competition, considering additional factors for decision-making and measures to address market concentration and entry barriers.

Consultation Deadline By March 1, 2024

The Canadian government is seeking input on key questions to enhance competition in the financial sector.

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These questions focus on:

• Identifying barriers in accessing banking services
• Improving the merger and acquisition review process for banks
• Considering a ban on large bank mergers
• Examining limits on bank growth through acquisitions
• Exploring ways to support smaller, innovative financial institutions like credit unions and fintechs
• The consultation also explores the need for a level playing field among financial sector participants, the possibility of regular reporting on banking sector competition
• Other measures to bolster competition while supporting job creation in the sector
• Stakeholders are encouraged to provide additional comments relevant to these topics.

All submissions for this consultation will be open until March 1, 2024.  Email them your comments and feedback at legreview-examenleg@fin.gc.ca with "Consultation on Concentration in the Banking Sector" in the subject line.

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Comments and feedback may also be sent by mail to:

Manuel Dussault
Director General
Financial Institutions Division
Financial Sector Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa ON K1A 0G5

For detailed questions, visit the consultation page --> here

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• Source: https://ncfacanada.org/dof-consultation-financial-competition-in-canada/