When many people talk about the Canadian economy, they are quick to talk all about the banking houses in Canada. One of the primary reasons why the banking industry in Canada has been able to do better through the recession than some of the other banking industries around the world is that all of the major houses in Canada are on strong footing financially. You won’t find any of these banks having to take government money for the most part, they have the capital to do what they need to do on a day to day basis.
The five primary houses
There are five major banking houses in Canada, each of which has a fair portion of the overall market share in the financial sector. These five Banks are The Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal, Bank of Nova Scotia, and Canadian Imperial Bank of Commerce. It should come as no surprise that the large banks in Canada are found in the eastern part of the country, as most of Canada’s financial centers fall there. There are other small banking houses in Canada, but these five are the bell cows and they can generally be counted upon to provide a good look at how the country’s economy is fairing at any given time.
A presence larger than your normal bank
One thing to know about the major banking houses in Canada is that they are not just „banks“ in the traditional sense of the word. They are larger than that and they are more like global conglomerates. Because of this great power, the Canadian government takes great pains to regulate the Canadian banking industry as much as they possibly can. If these banks do anything other than prosper, the Canadian economy is in huge trouble, so it is in everyone’s best interest to make sure that they stay on solid footing. Many of these regulations play an important role in why Canadian banking houses have not fallen victim to nearly as many „sub-prime“ pitfalls as the large American banks out there today.