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This site give deep information about the online banking of different Canada's banks. It is giving information about the online banking , its advantages,quality, how to use safe online banking, why use online banking,  benefits and the list of top online bank in Canada.
We selected  this site as now most of the people using online banking in their daily life as it is very convenient so this information must to understand before doing online banking. In this site they gave the information about different banks in which they are best, so we can choose bank accordingly our  own needs. Other thing is they gave detailed  comparison among all the banks. So we get to know which bank is more beneficial.

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The world is going digital and banking is no exception. According to the Canadian Bankers Association, in 2019, more than 76% of Canadians were doing their banking online and through mobile - and that number is rapidly rising.

There are many solid reasons to consider any of the online banks in Canada including convenience, features, and pricing.

Read on to learn about this emerging trend in personal finance management, including our top picks for the best banks in Canada.

If you haven't yet tried online banking, you might wonder what the fuss is about. After all, traditional face-to-face branch banking has served Canadians well for decades.

Before you make up your mind, consider these three areas in which online banking in Canada exceeds in-person branch banking:

Convenience
With online banking, your account is accessible from your computer, tablet, mobile app, or telephone.

This means an end to searching for a brick-and-mortar branch or an ATM, and renders the concept of "banker's hours" obsolete. If you want access to your money 24/7, online banking is the way to go.

Some brick-and-mortar banks offer customers "low-fee" accounts, but even these command a base monthly fee which can add up fast. In fact, Canadians are still paying an average of $200 per year in banking fees.

With online banking, customers have the option of a no-fee account - usually coupled with extremely competitive rates for common services like Interac e-Transfers® and a high-interest rate on savings accounts. If you don't want to pay for the privilege of accessing your own money, an online account might be just the solution.

Special Features
Imagine asking a teller to deposit a cheque using a smartphone photo or to send money by email?

They'd probably look at you like you have two heads - but Mobile Deposit and Interac e-Transfers® are services that many online banks offer.

In addition to all the traditional features to which customers have become accustomed, online banks offer special features that are simply unavailable elsewhere.

Finding the Best Bank in Canada

Traditional banks are being left behind by online banking in Canada. The only services online banks can't offer that traditional banks can are safety deposit boxes, counter service, and in-person advice.

That said, online banking does offer advice over the telephone or email and has the distinct advantage of being available 24/7 from wherever you are.

Decreasing service fees, increasing interest rates, and a wider selection of convenient services make online banking an attractive choice.

Tangerine: Best Overall

One of the best fully "branchless" online banks in Canada, Tangerine pairs some of the best online banking services with zero fees on all daily banking like debit purchases, withdrawals, transfers, bill payments, and Interac e-Transfers.

Their 0.15% interest rate for savings accounts is respectable, but the 2.15%* promotional rate when you sign up for a no-fee Tangerine Savings Account, TFSA, RSP, RIF, or US$ Savings Account for the first 5 months is outstanding.

For savvy savers, it's a great way to maximize your savings, and you can also earn up to $200 in cash bonuses simply by switching to a Tangerine Chequing account.

Tangerine also has two cash back credit cards: the Tangerine Money-Back Credit Card and the Tangerine World Mastercard®. There are no annual fees for either of these cards, and you can earn up to 2% unlimited Money-Back Rewards on everyday purchases.

Tangerine has also been ahead of the game in using technology to enhance their services, and they've earned a reputation for excellent customer service, winning awards year after year.

Should you need help, you can get in touch with a Tangerine Associate through an online chat session, a Twitter DM, or the 24/7 customer service line. Read our full Tangerine review to find out why it's our top pick for an online bank in Canada.

EQ Bank: Best For Super Savers

EQ Bank takes an entirely different approach to online banking than the others on this list.

With no branches and no ATMs, EQ Bank is accessed entirely through the web and mobile app only - a totally unique model. Instead of using personal cheques, a debit card, or an ATM, clients can move money between their Savings Plus Account and linked accounts.

For those willing to try a new way of banking, the benefit is clear: the Savings Plus Account offers no everyday banking fees, unlimited Interac e-Transfers®, free day-to-day transactions, and a 1.50%* everyday interest rate on their no-fee Savings Plus Account.

While EQ Bank may not be as well known in Canada, it's certainly a trustworthy bank to stash your cash - EQ Bank is brought to you by Equitable Bank, which has been around since 1970. One thing to note: the Savings Plus Account functions like a chequing account and can be used to pay bills and also transfer money instantly with no transaction or account fees.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice
Learn more about EQ Bank

Scotia OnLine: Best For Digital Interface

As one of Canada's "Big 5" banks, it's not surprising that Scotiabank's online (web and mobile app) banking options are feature-rich and intuitive to use.

Although most customers pay a monthly service fee of between $3.95 and $30.95 (accounts with a minimum balance and students accounts are free, and seniors get a discount), the interface and offerings were enough for Forrester to name Scotia OnLine as "The Best Consumer Digital Bank in Canada."

As a special promotion, earn $300 cash ¹ when you open a new Scotiabank Preferred Package account. Rewards chequing accounts are a rarity in the banking world, so this is a big perk.

Learn more about Scotiabank
¹To qualify, certain conditions must be met. Offer ends December 16, 2020. Visit www.scotiabank.com for full terms.
HSBC: Best For Global Banking

As one of the largest banks in the world, you can expect to receive a full range of services and expert advice at HSBC. For global citizens who have frequent international transactions, the HSBC Premier Chequing Account offers unlimited withdrawals and deposits in both Canadian and U.S. funds, as well as waived ¹ Interac e-transfers ® and $0 global wire transfer fees ² for transactions under $10,000 - a bonus if you send or receive money abroad on the regular. Plus, you'll pay $0 in monthly banking fees* for the first six months.

Learn more about HSBC Premier Chequing Account

The HSBC Advance Chequing Account is another solid option for frequent Interac e-Transfer ® users who also want a lower monthly fee. With this account, you get unlimited transactions, waived ¹ Interac e-Transfer ® transactions, and no-fee mobile cheque deposits. You pay $0 monthly banking fees* for the first 6 months, and the $25 monthly fee is waived beyond that if you maintain personal deposits and investments of $5,000 or more with HSBC Bank Canada or if you hold a personal HSBC Bank Canada mortgage with an original amount of $150,000 or more.

Bonus: Get up to $1,000* in cashback and rewards when you switch over to HSBC by November 30, 2020

Learn more about the HSBC Advance Chequing Account

Issued by HSBC Bank Canada and HSBC Investment Funds (Canada) Inc. *Terms and Conditions apply.

¹Other regular transaction fees may apply.

²Agency/beneficiary bank fees may apply. Additional conditions apply.

®Trade-mark of Interac Inc. Used under license.

RBC Online: Best For Bundles

Another "Big 5" bank, RBC Online offers numerous account options at different levels with a wide range in monthly fees (from $4.00 to $30.00).

Though they don't waive fees for maintaining certain balances, customers can cut down their service charges by bundling RBC products (such as credit cards, investments, and/or mortgage).

The RBC online banking option includes all the typical features, like transfer and bill payments, but there's not much outstanding in their portfolio.

Learn more about RBC Online

BMO Online: Best For Senior, Student, & Military Discounts

In line with the other "Big 5" banks on this list, BMO offers a standard set of features with standard rates, though customers with the Savings Builder Account can earn up to 1.6% interest.

Although they offer discounts to seniors, students, and armed forces, the monthly fees range from $4.00 to $30.00 month. Their online banking interface is intuitive and has all the typical features.

Learn more about BMO Online

TD Online: Best For Mobile App

Neither the account options nor the interest rates tempt with TD Canada Trust, but this bank does offer several decent no-fee savings accounts.

They have a mobile app for online banking along with handy add-on features like TD MySpend that helps customers track and improve spending habits.

Learn more about TD Online

CIBC Online: Best Overall For Seniors

CIBC offers a full portfolio of account options designed for people at different stages of their lives and careers. In terms of fees and interest rates, CIBC is in line with the other Big 5 banks.

One notable difference here is that unlike the other institutions on our list, CIBC offers five account types for seniors - everything from a simple chequing account to a bundle that includes a premium credit card to US dollar account for seniors.

Learn more about CIBC Online

FirstOntario: Best For Ontarians Seeking a Credit Union

The only credit union on our list, FirstOntario offers chequing and savings accounts, as well as free and paid options. Some of their features include online bill payments, debits, bank transfers, Interac e-Transfers®, and personal cheques, along with a slew of nifty online tools.

There's even a feature that lets you round up on purchases and save the balance.

Learn more about FirstOntario

Simplii Financial: Best For Free Internet e-Transfers

Formerly PC Financial and affiliated with CIBC, Simplii is one of the branchless options for online banking in Canada. Like the name says, Simplii trades in simplicity, offering one chequing and one savings account, each without monthly fees.

Using web or mobile, customers can do everything from pay bills to transfer funds to paperless cheque deposits. The no-fee chequing account offers unlimited debit purchases, bill payments and withdrawals, free access to over 3,400 CIBC ATMs across Canada, and free Interac e-Transfers®.

Learn more about Simplii Financial

Comparison of the Best Banks Canada 2020

When you're ready to consider opening an online bank account in Canada, use this chart to compare the best online banks in Canada with the best online banking services.

*Terms and conditions apply. Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice

Comparing Tangerine and Simplii

When it comes to naming the best online banking services in Canada, the field narrows to the top branchless online banks: Tangerine and Simplii.

Unlike traditional banks, these two carry no monthly fees, have robust feature sets, and are made for online or mobile use. With the exception of EQ Bank (which missed the top spot overall because of a lack of features such as ATM withdrawals), branchless banks offer similar interest rates to traditional banks but without the fees.

While either option is a great choice for the average Canadian, there are some slight differences. Let's take a closer look.

For chequing accounts, both Tangerine and Simplii offer:

No fees for daily transactions including withdrawals, transfers between accounts, and Interac purchases

Unlimited bill payments (one-time or automated)

Free Interac e-Transfers

Unlimited ATM withdrawals within parent's networks of machines (Scotiabank for Tangerine and CIBC for Simplii)

Mobile cheque deposit (where you can use the camera on your phone to deposit a cheque)

Overdraft protection (with application)

24/7 customer support

Tangerine vs Simplii Chequing Account

As you can see, the difference between these two online banking options is really minor. The choice may just come down to whether you prefer the CIBC or Scotiabank ATM network.

How Safe Are Online Banks in Canada?

Every bank on our list is well-established in Canada and a credible financial institution.

Like traditional banks, the odds of online banks failing are very slim. In any case, you can rest easy: the Canada Deposit Insurance Corporation (CDIC) covers eligible deposits in your own name, joint accounts, trust accounts, TFSAs, RRSPs, and more up to $100,000.

It does not apply to investment products such as stocks, bonds, or mutual funds.

Security breaches of online accounts are rare, but it's always wise to choose a unique and complex password and PIN.

Why Go with Online Banking: Benefits of Banks with No Fees?

The best bank account in Canada for you is the one that helps you save money - not the one that costs you money to use.

Based on that criterion alone, look for a trustworthy online bank without fees, like Tangerine or Simplii. Although neither bank has brick-and-mortar branches (so you'll have to store your family jewels elsewhere), both offer the benefit of 24/7 online or mobile access, superior pricing (can't beat no-fee!), and a full feature set including unlimited transactions, paperless cheque deposits, and Interac e-Transfers®.

Ultimately, Tangerine stands out as the best online bank in Canada. Offering no-fee chequing and savings accounts, outstanding customer service, innovative banking technology, and respectable interest rates, Tangerine snags our top spot as the best online bank in Canada.

You'll enjoy a full range of banking services while keeping more money in your wallet where it belongs.
If you liked this article, you might also enjoy The Best Robo Advisors in Canada: A Complete Guide

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The Complete Guide to Best Banks in Canada 2020 - Young and Thrifty

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The world is going digital and banking is no exception. According to the Canadian Bankers Association, in 2019, more than 76% of Canadians were doing their banking online and through mobile - and that number is rapidly rising. There are many solid reasons to consider any of the online banks in Canada including convenience, features, and pricing.

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This post giving depth information about the biggest 5 banks of Canada about their assets, capitalization, customers, employees. Their  assets around 100$ billions and they all based in Toronto.
The master piece of this, it is giving knowledge about their history. in which year they established the reason behind that.
Bank of Montreal is the oldest one which  became helped full during World War 1 and 2 also in global financial crisis in 2008.
Royal Bank of Canada is the largest bank among them and it gives 1% of its income to charity.

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What Are the Big Five Banks?

The Big Five Banks is a term used in Canada to describe the five largest banks: Royal Bank, Toronto-Dominion Bank, the Bank of Montreal, the Canadian Imperial Bank of Commerce, and the Bank of Nova Scotia. Occasionally, the term "Big Six Banks" is used, with the sixth bank referring to the National Bank of Canada.

Key Takeaways

Below, we've ranked the five largest banks in Canada based on assets under management.

1. Royal Bank of Canada

Royal Bank of Canada is the largest of the Big Five. In its 2024 second-quarter report, Royal Bank of Canada recorded total net assets under management of CA$1.223 trillion. It also reported CA$6.6 billion of net interest income and CA$7.5 billion of non-interest income. Founded in 1864 in Halifax, Nova Scotia, the bank financed the lumber and timber industries. It was known as the Merchants Bank of Halifax.

2. Toronto-Dominion Bank

The second-largest bank in Canada is the Toronto-Dominion Bank. As of the second quarter of 2024, Toronto-Dominion Bank reported total assets under management of just under CA$489 billion. It reported net interest income of CA$7.5 billion and non-interest income of CA$6.3 billion.

Is the Toronto-Dominion Bank the Same As TD Canada Trust?

3. Bank of Montreal

The Bank of Montreal is the next largest Canadian bank. In the firm's 2024 second-quarter report, Bank of Montreal, or BMO, recorded total assets under management of CA$386 billion. In this period, BMO reported CA$4.5 billion of net interest income and CA$3.5 billion of non-interest income.

4. Canadian Imperial Bank of Commerce

In the second quarter of 2024, the Canadian Imperial Bank of Commerce recorded CA$349.2 billion in assets under management. CIBC reported net interest income of CA$3.2 billion and net non-interest income of CA$2.9 billion.

5. Bank of Nova Scotia

The Bank of Nova Scotia, or Scotiabank, is the next largest bank in Canada. In its 2024 second-quarter report, Bank of Nova Scotia recorded CA$349 billion in total assets under management. It also reported CA$4.7 billion in net interest income and CA$3.7 billion in non-interest income.

What Is the Biggest Bank in Canada?

The biggest bank in Canada is the Royal Bank of Canada.

What Services Do Canada's Largest Banks Offer?

These largest banks listed in this article offer a wide range of services including personal and business banking, investment services, mortgages, loans, credit cards, insurance products, and more. They cater to various financial needs of individuals and businesses.

Do These Banks Have International Branches or Services?

Yes. To reach the size of these largest Canadian banks, these firms have international branches and offer international banking services. Some have partnerships with foreign banks to provide international services. Others simply seek those wishing to perform international business or carry Canadian deposits.

Why Are the Largest Banks in Canada Called the "Big Five"?

The top five Canadian banks are collectively referred to as the "Big Five" due to their dominant position and significant influence within the country's banking and financial industry. This term has been used for many years to characterize these major banks, and it highlights their substantial market share and impact on Canada's economy.

The Bottom Line

Though their financial health and positioning may vary from year to year, Canada has five largest, established banks that control the financial industry in the country. These largest banks include Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Bank), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC).

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The Big Five: Here Are Canada's Largest Banks by Total Assets

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The Big Five refers to the five largest banks in Canada: Royal Bank, Toronto-Dominion Bank, the Bank of Montreal, the Canadian Imperial Bank of Commerce, and the Bank of Nova Scotia.

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This site is all about latest regulations of banks. Canada's banks are  consider safest and soundest globally to maintaining this things  they have to ready for different changes and future challenges. The main goal is provide  stable and efficient financial system for that they continuing doing changes to makes it strong.
Parliament of Canada is the main regulator of all banks, it works under BankAct1. Other federal financial regulatory authorities are  Bank of Canada, the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Deposit Insurance Corporation (CDIC).
This site is so important as it is giving information about core of banks and their regulations. Key things about bank governance and their internal controls, required capital, various rules for the customers and third parties. As being a good citizen its needs to understand about the financial system of our country. As it affects our daily routine in  financial stability to protect ourselves and country from the crisis.

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GLI - Global Legal InsightsInternational legal business solutions

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Banks in Canada have been continuously recognised as amongst the soundest and safest across the globe. Notwithstanding, the global financial crisis has led to a series of significant regulatory changes (most notably in the areas of liquidity and capital), designed to reduce the risk of another global financial crisis occurring and ensure that Canadian banks will continue to be well positioned for future challenges.

Banking in Canada falls under federal jurisdiction such that the Parliament of Canada has legislative authority over "Banking, Incorporation of Banks, and the Issue of Paper Money". The primary piece of legislation that governs banking in Canada is the Bank Act 1 and its regulations.

Banks in Canada are supervised by multiple regulators, with the Office of the Superintendent of Financial Institutions (OSFI) responsible for prudential regulation, and the Financial Consumer Agency of Canada (FCAC) responsible for consumer protection. OSFI regulates and supervises all banks under its supervisory framework, develops and interprets legislation, and issues guidelines. FCAC ensures that federally regulated financial institutions (FRFIs) comply with consumer protection measures, and helps to keep consumers informed. FCAC also supervises payment card network operators and external complaints bodies. FCAC's Enforcement Division investigates and evaluates possible concerns, and has the power to enforce compliance.

Several other regulatory bodies are also involved in regulating banks in Canada. The Department of Finance helps the government develop and implement financial sector policy and legislation. The Bank of Canada, which is owned by the federal government, helps to keep inflation low, promotes efficient banking systems, is responsible for currency, and is a fiscal agent for the government. The Canadian Payments Association (d.b.a. Payments Canada) (PC) runs the national clearing and settlement system in Canada. The Canada Deposit Insurance Corporation (CDIC) provides deposit insurance to all member institutions (which includes all major Canadian banks) against the loss of eligible deposits in the event of failure. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) helps to protect Canada's financial system by detecting and deterring money laundering and terrorist financing under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act 2 and its regulations.

The Ombudsman for Banking Services and Investments (OBSI) is an independent and impartial body that resolves disputes between banks and their customers when a bank is not able to resolve the dispute internally. The Canadian Bankers Association helps to ensure Canada has a successful banking system by advocating for effective policies and working with banks and law enforcement to protect Canadians against financial crimes. Banks in Canada also need to ensure compliance with privacy legislation, which is enforced by the Office of the Privacy Commissioner of Canada, who has the power to investigate complaints, conduct audits, and pursue court action. Finally, the Financial Institutions Supervisory Committee, whose membership consists of OSFI, the Bank of Canada, the Department of Finance, CDIC and FCAC, meets to discuss, coordinate, and advise the federal government on issues related to the Canadian financial system.

There are also three supranational regulatory bodies that are influential in Canadian banking. The Bank for International Settlements (BIS), of which the Bank of Canada is a member, leads global regulatory work on financial systems across the globe. The Basel Committee on Banking Supervision (Basel Committee) is made up of BIS members, and sets out to strengthen worldwide banking through the release of recommendations aimed at enhancing financial stability. Both the Bank of Canada and OSFI are Basel Committee members and are committed to implementing its recommendations. Lastly, the Financial Stability Board (FSB), which consists of G20 countries, monitors and makes recommendations related to the global financial system. The Bank of Canada, OSFI and the Department of Finance are members of the FSB.

Restrictions on activities

The Bank Act imposes ownership requirements on banks in Canada. For instance, the Bank Act prohibits a person from being a major shareholder of a bank with equity of $12bn or more. Banks with equity of $2bn or more but less than $12bn must have at least 35% of their shares with voting rights listed and posted on a recognised stock exchange and they must not be owned by a major shareholder.

Pursuant to the Bank Act, banks are only permitted to carry on the "business of banking" which includes activities such as providing financial services, acting as a financial agent, providing investment counselling, issuing payment, credit, or charge cards, etc. Except when permitted by the Bank Act, banks may not "deal in goods, wares or merchandise or engage in any trade or other business".

The Bank Act also includes restrictions on undertaking fiduciary activities, guarantees of payment or repayment, dealing in securities, engaging in the insurance business, undertaking personal property leasing activities, and entering into partnerships. Moreover, banks have restrictions on the types of investments they can make and are prohibited from investing in an entity that carries on some activities listed above or entities that deal in securities, except in certain circumstances. Banks may invest in securities, but are restricted from making substantial investments (e.g. acquiring more than 10% interest in a non-bank entity) or in controlling certain types of entities. Under s.468(1) of the Bank Act, banks may acquire control of, or make a substantial investment in other banks, trust or loan companies, insurance companies, cooperative credit societies and entities primarily engaged in dealing in securities. However, certain investments nonetheless require the approval of OSFI or the Minister of Finance.

Banks are prohibited from imposing any undue pressure or coercion to obtain a product or service on any person. Subject to certain exceptions, a bank cannot make a loan to a natural person that contains conditions which prohibit the prepayment of the loan prior to the due date, nor require a natural person to have an initial minimum deposit or the maintenance of a minimum balance with respect to a retail account of an individual who meets certain prescribed conditions.

Banks are also prohibited from entering into related party transactions, except as otherwise permitted under the Bank Act (for instance, if the value is "nominal or immaterial to the bank").

The banking architecture in Canada has continued to change to strengthen financial security and to incorporate international standards. In August 2017, the Department of Finance released its second consultation paper, entitled Potential Policy Measures to Support a Strong and Growing Economy: Positioning Canada's Financial Sector for the Future.3 This paper launched the second phase of a renewal of Canada's federal financial institution statutes prior to the statutory sunset date (which has been re-set for another five years). The statutes that may receive consideration include the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act and the Trust and Loan Companies Act. The Department of Finance is focusing on four central themes in relation to its policy review: (i) supporting a competitive and innovative sector; (ii) improving the protection of bank consumers; (iii) modernising the framework; and (iv) safeguarding a stable and resilient sector.

The Canadian Federal Government's 2018 budget, introduced on February 27, 2018, included a number of proposals that will affect Canada's financial sector. These include proposals to: modernise and enhance the Canadian deposit insurance framework; implement a resolution framework for systemically important financial market infrastructures; undertake a review of "open banking" merits and platforms; launch a review of the Canada Payments Act; adapt financial sector frameworks to emerging fintechs; and strengthen the FCAC's tools and mandate.

As a result of the Budget Implementation Act, 2018, No. 14 which received Royal Assent in June, 2018 several amendments were or will soon be made to the Bank Act to incorporate some of the federal government's proposals set out in the 2018 budget, and to address the emergence of fintech in the banking industry. For instance, allowing trust companies, credit unions and co-operatives to use the words "bank", "banking" and "banker", provided that they disclose the type of entity they are, among other items, and clarifying and expanding the powers of financial institutions to engage in fintech business initiatives, including investing in fintech companies to a limited degree and in accordance with regulations (which have not yet been published). Generally, the initiatives are designed to facilitate a collaborative environment between federally regulated institutions and fintech companies.

On December 14, 2017, the Competition Bureau released the final report from its market study analysing the regulatory and non-regulatory issues faced by the fintech industry in Canada, entitled Technology-led innovation in the Canadian financial services sector.5 The focus of the study was on how technologies such as mobile payments, online crowdfunding, peer-to-peer banking and robo-advisors shape consumer and business interactions with financial products. The final report made 11 general recommendations for regulators and policy makers, centred on reducing barriers to entry faced by fintechs and creating a regulatory regime able to keep up with technological change, as well as additional industry-specific recommendations with respect to payment and payment systems, lending and investment dealing and advice.

In 2016, PC announced an initiative to modernise the infrastructure and rules and standards of Canada's national payments system. On December 21, 2017, PC released a report entitled Modernization Target State,6 detailing a plan for modernisation of the payments system in Canada, including a description of fundamental core systems and support structures such as risk and regulatory requirements, access and settlement models and technology platforms. The international ISO 20022 payment-messaging standard will underpin the new systems and enable the flow of more data alongside payments transactions. On May 25, 2018, the Department of Finance published a consultation paper that proposed expanded access to PC's systems for non-traditional payment service providers, with the goal of ensuring that the Canadian payments system continues to function efficiently and competitively, while maintaining high standards of safety and soundness, and meeting the needs of Canadian consumers and businesses.

In 2015, OSFI issued the final version of its advisory with respect to the early adoption of IFRS 9 for Domestic Systemically Important Banks (D-SIBs) (i.e., the six largest banks in Canada), requiring that D-SIBs adopt IFRS 9 for the annual period beginning on November 1, 2017. OSFI released the final guideline entitled IFRS 9 Financial Instruments and Disclosures on June 21, 2016. IFRS 9 became mandatory for all federally regulated deposit-taking institutions (DTIs) for annual periods beginning January 1, 2018. IFRS 9 is a forward-looking approach that aims to improve issues arising from the method of accounting for financial instruments, simplify the existing rules and enhance investor confidence in the financial system in Canada.

OSFI has recently implemented several changes with regard to the Basel Committee's Basel II and Basel III frameworks. In January, 2018, OSFI introduced a revised version of the floor on the minimum risk-based capital requirements for banks using internal models relative to the Basel II standardised approach (which are reflected in the CAR Guideline, as defined below). A further revised version based on Basel III is expected to be introduced within the next five years. In April 2017, OSFI released a guideline entitled Pillar 3 Disclosure Requirements, clarifying its expectations regarding domestic implementation by Canadian banks of the Revised Pillar 3 Disclosure Requirements issued by the Basel Committee in January of 2015. D-SIBs were required to implement the revised standards for the reporting period ending October 31, 2018 while non-D-SIBs were permitted to continue with their existing Pillar 3 disclosures.7 Foreign bank branches, financial institutions that do not take deposits, and subsidiaries of Canadian federally regulated DTIs that report consolidated results to OSFI are exempt from the Basel Pillar 3 disclosure requirements.

The implementation of the Basel III reforms by OSFI is expected to be completed by Q1, 2022, with exceptions for operational risk, credit risk as it relates to the leverage ratio framework, and the transition period for the output floor.8

On June 9, 2018, the Department of Finance announced proposed amendments to the regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act that governs Canada's anti-money laundering and anti-terrorist financing (AML/ATF) regime. The amendments will update due diligence and beneficial ownership requirements, regulate businesses dealing in virtual currencies, include foreign money service businesses in Canada's AML/ATF regime, clarify a number of existing requirements and make minor technical changes. Implementation of the proposed amendments is not expected before 2019.

On November 21, 2017, the Royal Bank of Canada was deemed a global systemically important bank (G-SIB) and as such, will be required to meet certain G-SIB requirements starting in January, 2019.

Canadian banks are subject to the regulatory oversight of OSFI. OSFI has publicly affirmed its commitment to participating in the development of international financial standards, and has been proactive in the adoption and implementation of the Basel III framework of the Basel Committee. It is expected that the theme of principle-based regulation and individual institution oversight will continue in Canada, as well as the implementation of resolution regimes.

Residential Mortgage Underwriting

On January 1, 2018, revisions to OSFI's Guideline B-20: Residential Mortgage Underwriting Practices and Procedures became effective.9 The revisions include recommendations such as FRFIs developing strong underwriting policies, performing due diligence to record and assess the borrower's identity, background and demonstrated willingness to service his/her debt obligations on a timely basis, and developing effective credit and counterparty risk management practices and procedures that support residential mortgage underwriting and loan asset portfolio management.

Capital Conservation Buffer

To avoid breaches of minimum capital requirements, banks in Canada are required to hold a capital conservation buffer, the details of which are set out in OSFI's Capital Adequacy Requirements (CAR) (CAR Guideline).10 On October 30, 2018, OSFI released the final version of the CAR Guideline for implementation in Q1 2019. The main revisions to the CAR Guideline relate to: the implementation of the standardised approach to counterparty credit risk; capital requirements for bank exposure to central counterparties; and the securitisation framework. Implementation is expected by November 1, 2018 for institutions with an October 31 year end, and January 1, 2019 for institutions with a December 31 year end. The capital conservation buffer remains equal to 2.5% of a bank's risk-weighted assets. Currently, banks in Canada are advised to maintain the minimum Common Equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio plus the capital conservation buffer.

D-SIBs are required to hold a Domestic Stability Buffer intended to cover a range of Pillar 2 systemic vulnerabilities not adequately covered in the Pillar 1 capital requirements set out in the CAR. The level of the buffer is the same for all D-SIBs and will be reviewed by OSFI on a semi-annual basis.

Leverage Requirements

In addition to the CAR Guideline, Canadian banks must maintain a ratio of capital to exposure that meets or exceeds 3% at all times under OSFI's Leverage Requirement (LR Guideline).11 On October 31, 2018, OSFI issued the final version of its LR Guideline for implementation in Q1 2019 (to be implemented November 2018 or January 2019 depending on fiscal year end) to ensure consistency with the treatment of derivatives and certain securitisation exposures under the CAR Guideline. Relatedly, a revised draft of OSFI's Leverage Ratio Disclosure Requirements was published in August, 2018.

Common Equity Tier 1 Surcharge

Consistent with the Basel Committee's Basel III framework,12 and as described above, OSFI has designated six Canadian institutions as D-SIBs: Bank of Montreal; Bank of Nova Scotia; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; and Toronto-Dominion Bank of Canada. These six D-SIBs account for approximately 90% of the total assets of Canada's federally regulated DTIs13 and must achieve compliance with heightened regulatory requirements. The imposition of such requirements may offset the potential negative impact of any one D-SIB's failure.

Pursuant to the CAR Guideline, D-SIBs are subject to a Common Equity Tier 1 Surcharge (CET1) equivalent to 1% of the D-SIB's risk-weighted assets. This CET1 surcharge is implemented through the extension of the capital conservation buffer. D-SIBs will be restricted in their ability to make distributions such as dividends in the event they do not satisfy their relevant capital conservation ratio.

Total Loss Absorbing Capacity

In April, 2018, OSFI published its Total Loss Absorbing Capacity (TLAC) guideline (which became effective on September 23, 2018) (TLAC Guideline),14 the purpose of which is to ensure that a non-viable D-SIB has sufficient loss-absorbing capacity to support its recapitalisation. Beginning in November 2021, all banks designated as D-SIBs will be subject to a minimum standard risk-based TLAC ratio and the TLAC leverage ratio. The minimum ratios required will be set out in orders made by OSFI under the Bank Act.

The TLAC guideline is consistent with the Principles on Loss-Absorbing and Recapitalisation Capacity of G-SIBs in Resolution: Total Loss-Absorbing Capacity Term Sheet that Canada helped develop as a member of the FSB and the Basel Committee.

In May, 2018, OSFI published its Total Loss Absorbing Capacity (TLAC) Disclosure Requirements Guideline and Capital Disclosure Requirements Guideline 15 which provides robust TLAC disclosure templates, promoting transparency and market discipline with respect to D-SIBs. Disclosures related to TLAC should be implemented commensurate with the quarterly reporting period ending January 31, 2019.

On August 21, 2018, OSFI published a news release indicating that it had set the minimum TLAC ratio at 21.5% of risk-weighted assets of D-SIBs, and the minimum TLAC leverage ratio at 6.75%.16

Other

Recent revisions were also made by OSFI to the Liquidity Adequacy Requirements (LAR) Guideline (including to extend the implementation of the Net Stable Funding Ratio thereunder to 2020), the Capital Disclosure Requirements (to reflect consequential amendments as a result of the TLAC Guideline) and to five different transaction instructions (DA. No. 2, DA. No. 4, A. No. 11, A. No. 14 and A. No. 91). A revised draft of OSFI's Guideline B-12: Interest Rate Risk Management was also issued in October, 2018, with a targeted implementation date of January 1, 2020. The changes incorporate guidance from the Basel Committee with respect to Interest Rate Risk in the Banking Book (IRRBB).

The legislative requirements for the governance of banks are found in the Bank Act which prescribes the form and degree of governance required.17 The Bank Act sets out that Canadian banks must have a minimum of seven directors; if the bank is a subsidiary of a foreign bank, at least half of its directors must be resident Canadians, and if the bank is a domestic bank, a majority of its directors must be resident Canadians. Banks are prohibited from having more than two-thirds of their directors qualifying as 'affiliated' with the bank, which includes but is not limited to the following relationship with the bank: ownership of a significant interest in a class of shares; being a significant borrower; or acting as an officer.18

Directors are legally obligated to discharge their duties honestly and in good faith with a view to the best interests of the bank, and are required to exercise the care, diligence and skill set that a reasonably prudent person would exercise in comparable circumstances. Directors must also establish an audit committee, a conduct review committee, a committee to monitor compliance with public disclosure requirements and a committee to monitor the resolution of conflicts of interest. The CEO of a Canadian bank must be a director of the bank as well as a resident of Canada. A significant feature of the Bank Act is the reservation of the power in the shareholders to remove a bank's directors. A bank's board of directors (Board) is responsible for ensuring that the compensation of employees, senior management (Management) and the Board is aligned with the bank's long-term interests.19 Compensation for all employees is to be consistent with the FSB's Principles for Sound Compensation guideline and related Implementation Standards.

Corporate governance - the role of the board and management

Although the legislative regime of the Bank Act is fulsome, OSFI publishes guidance documents which detail the practical mechanisms of compliance in the Canadian banking industry. In September, 2018, OSFI released its revised Corporate Governance guideline (Governance Guideline)20 which communicates OSFI's expectations with respect to corporate governance, which complements the Bank Act and OSFI's Supervisory Framework and Assessment Criteria.21 The Governance Guideline does not apply to the branch operations of foreign banks. It highlights the distinction between the decision-making role of a bank's Board and the decision-implementing role of its management and sets out that a Board should be independent of management. Apart from the critical separation of the roles of Board Chair and CEO, the Governance Guideline does not prescribe any single Board structure as guaranteeing independence.

The Governance Guideline sets out that the Board plays a crucial role in the success of a DTI through its approval of overall strategy and risk appetite, as well as oversight of senior management and internal controls, and specifies that the primary functions of a bank's Board should include approving and overseeing the following:

Short-term and long-term business objectives and strategies including a Risk Appetite Framework (RAF) detailing the aggregate level, type and limits of risk acceptable to the bank to achieve its objectives.

Significant strategic initiatives such as capital targets and share issuance.

Appointment, performance review and compensation of the bank's CEO and other senior management, as well as succession planning regarding the Board, CEO and other members of senior management.

External and internal audit plan.

Senior management of a bank should be responsible for, among other things, guidance related to the following:

Significant operational, business, risk and crisis-management policies.

Compensation policy for all human resources that is consistent with the FSB's Principles for Sound Compensation.

Business and financial performance relative to the strategy and Risk Appetite Framework approved by the Board, as per above.

Implementation and effectiveness of internal controls.

Implementing the Board's decisions and directing the operations of the DTI.

Both Board and management have significant duties beyond those expressly found in the Bank Act. The structure of the bank itself may impose some further duties on a Board. For example, a parent company's Board should implement sufficient oversight of a subsidiary's activities to ensure that the parent Board is able to discharge all of its responsibilities to the parent company. The interaction between senior management and the Board should occur primarily through the CEO. The Board should supervise the oversight functions of the bank through the engagement of the relevant committees, such as the audit committee. The heads of the oversight functions should have sufficient authority and autonomy from senior management. They should have unfettered and direct access to the Board or the relevant Board committee for reporting purposes.

Risk governance

One focal element of the Governance Guideline is the concept of risk governance, which OSFI characterises as a distinct and crucial element of corporate governance in Canada. Banks should be in a position to identify the important risks they face, assess their potential impact and have policies and controls in place to effectively manage them. A bank's Board should establish an RAF that is enterprise-wide and forward-looking, and tailored to its domestic and international business activities and operations, which includes the goals, benchmarks, parameters and limits that the bank considers appropriate, and which establishes mechanisms to control risk as well as a process to ensure the effectiveness of such controls.

Measures endorsed in the Governance Guideline include the creation of a Board Risk Committee and the appointment of a Chief Risk Officer (CRO). The CRO should have the necessary stature and authority within the bank and should be independent from operational management. The CRO should not be directly involved in revenue-generation, and their compensation should not be linked to the bank's performance of specific business lines. The CRO should have unfettered access to, and a direct reporting line to, the Board or Risk Committee.

In September 2017, OSFI published the Enterprise-Wide Model Risk Management for Deposit-Taking Institutions Guideline,22 designed to establish a common standard for enterprise-wide model risk-management, in order to ensure that all institutions have a baseline understanding of the minimum level of expectations with respect to their use of models that could have a material impact on the institution's risk profile. OSFI will treat Internal Models Approved Institutions (IMAIs) and Standardised Institutions (SIs) differently under its Guideline. IMAIs are subject to all components of the Guideline, whereas SIs are only required to comply with OSFI's minimum expectations (but should strive to comply with the entire Guideline).

The role of the Audit Committee

The Governance Guideline also expands upon the relevant duties of the Audit Committee as mandated by the Bank Act.23 The Audit Committee, not management, should recommend to the shareholders the appointment and removal of the external auditor for the bank. The Audit Committee should agree to the scope and terms of the audit engagement, and review and recommend for approval by the Board the engagement letter and remuneration for the external auditor. The Audit Committee should discuss with senior management and the external auditor the overall results of the audit, the financial statements, and any related concerns raised by the external auditor.

The Audit Committee should satisfy itself that the financial statements fairly represent the financial positions, the results of operations and the cash flow of the DTI. In order to do so, the Audit Committee should meet with the external auditor, the internal auditor, and other heads of the oversight function, as appropriate, with and without the CEO or other members of senior management present.

Outsourcing banking functions

Technology, specialisation, cost and competition continually and dynamically shape the market for Canadian banks both domestically and abroad. Banks may consider outsourcing certain activities in response to such shifts in the market. OSFI's guideline on Outsourcing of Business Activities, Functions and Processes (the Outsourcing Guideline) highlights that although regulatory flexibility is afforded in order to ensure the commercial viability of Canadian banks, banks remain responsible for all outsourced activities.24 In light of this responsibility, a bank's Board should periodically approve and review outsourcing policies and relationships. Management should communicate with the Board regarding material outsourcing risks, develop outsourcing policies for Board approval, implement such outsourcing policies upon approval, and periodically review their effectiveness.

It is expected that banks will assess the materiality of their outsourcing arrangements, developing and maintaining a Risk Management Program for all material outsourcing arrangements. A bank should maintain a centralised list of all outsourcing arrangements identified as material as part of its Risk Management Program. A template for such a centralised list is annexed to the Outsourcing Guideline. OSFI recommends the use of a table to capture the nature of the arrangement, the jurisdiction from which the service is being provided, the expiry and renewal dates applicable to the arrangement, the estimated cost of the arrangement and the estimated value of the contract.

Part X of the Bank Act deals with adequacy of capital and liquidity for Canadian banks and requires that banks maintain adequate capital and adequate and appropriate forms of liquidity. Bank capital under the Basel regime consists of "Tier 1" capital - in turn consisting of Common Equity Tier 1 capital and Additional Tier 1 capital - and "Tier 2" capital.

OSFI is authorised under the Bank Act to establish guidelines respecting both the maintenance of adequate capital and adequate and appropriate forms of liquidity. The CAR Guideline supplements the Bank Act and implements the related Basel III capital rules without significant deviation, other than a more accelerated timeline than is required under Basel III.

In accordance with the Leverage Requirements Guideline, OSFI has the power to prescribe leverage ratio requirements for specific institutions on the basis of a number of factors, including the institution's risk-based capital ratios compared to internal targets and OSFI targets, the adequacy of capital and liquidity management processes and procedures, and the institution's risk profile and business lines. The authorised leverage ratio for individual institutions is not publicly disclosed.

The bail-in regime initially passed by Parliament in June 2016 is now effective (as of September 23, 2018). The changes, mostly to the Canada Deposit Insurance Corporation Act, establish a bail-in regime for D-SIBs. The bail-in regime allows the Government of Canada to convert certain debt of a failing D-SIB into common shares to recapitalise the bank and allow it to remain open and operating. Only prescribed long-term debt is subject to the bail-in power, and deposits are excluded. Three new regulations were also made by the Department of Finance to facilitate implementation of the bail-in regime, including the Bank Recapitalization (Bail-in) Conversion Regulations, Bank Recapitalization (Bail-in) Issuance Regulations, and Compensation Regulations. Together, these regulations define the conditions for the conversion of instruments eligible for bail-in, outline terms that must be adhered to upon issuance of an eligible bail-in instrument, and establish a framework to determine compensation for those entitled under the regulations.

The purpose of the TLAC Guideline (discussed above) is to provide a non-viable D-SIB with sufficient loss-absorbing capacity to support recapitalisation in the event of failure. This would facilitate an orderly resolution of the D-SIB while minimising adverse impacts on the stability of the financial sector, ensuring the continuity of critical functions and minimising taxpayers' exposure to loss. The requirements came into effect on September 23, 2018 and D-SIBs have until November 1, 2021 to comply.

The TLAC Guideline, together with the CAR requirements and the Leverage Requirements Guideline (each as discussed above), help to form the framework for the assessment of whether a D-SIB maintains its minimum capacity to absorb losses, in accordance with the Bank Act.

As part of compliance and monitoring requirements, DTIs (other than foreign bank branches) provide OSFI with quarterly Basel Capital Adequacy Reporting (BCAR).25 If reporting indicates deteriorating capital, the financial institution can be subject to escalating stages of intervention, starting with additional reporting requirements and continuing to specific temporary restrictions on the business lines of the financial institution.

Additionally, OSFI has the authority to direct a financial institution to increase its capital if it determines that a financial institution is undercapitalised or, in severe cases, to take control of the assets of the financial institution or of the financial institution itself.

The Bank Act and specific regulations thereunder have detailed provisions relating to consumer protection. Among other things, the Bank Act and related regulations contain requirements for the simplified disclosure to customers of the cost of borrowing and interest rates.

The FCAC has the mandate of administering consumer protection provisions of the Bank Act. Pursuant to the Financial Consumer Agency of Canada Act,26 the FCAC's mandate includes: supervision of FRFIs to ensure that they comply with federal consumer protection measures; promotion of the adoption of policies and procedures with respect to voluntary codes of conduct, and financial institutions' public commitments designed to implement consumer protection measures; supervision of payment card network operators; and promotion of consumer financial awareness. The FCAC also monitors and evaluates trends and emerging issues in consumer financial services and promotes public awareness about the consumer protection obligations of financial institutions and payment card network operators. The FCAC has the power to impose monetary penalties, impose criminal sanctions or take other actions as are necessary. However, in cases of minor oversights, the FCAC will work with financial institutions to rectify any issues.

On October 1, 2018, the FCAC's new Supervision Framework27 came into effect and replaced the prior Compliance Framework. Although the core activities governing the FCAC's supervisory approach remain consistent, numerous enhancements have been incorporated into the new framework. FCAC also recently published a report entitled: Domestic Bank Retail Sales Practices Review and its Report on Best Practices in Financial Consumer Protection.

The CDIC, a statutory corporation, provides deposit insurance on certain types of small deposits. The CDIC is funded through premiums charged to member institutions. The CDIC insures up to $100,000 per customer, per financial institution, per insured category of deposits for certain eligible Canadian dollar-denominated deposits (including savings accounts, chequing accounts and term deposits with an original term to maturity of five years or less).

With respect to customer information and privacy, Canadian banks must comply with the Personal Information Protection and Electronics Documents Act (PIPEDA). In addition, all banks in Canada have a common law duty of confidentiality in their dealings with customers and in customer identification. PIPEDA provides a regulatory regime in respect of collection, use and sharing of personal information in the context of commercial activities, and requires that institutions obtain an individual's consent prior to using such personal information. Canadian banks have a positive duty to safeguard personal information that has been collected, and to abide by the limits on the retention of personal information, as set out in PIPEDA.

Banks are also required to comply with Canada's Anti-spam Legislation (CASL), which regulates unsolicited commercial electronic communications sent by commercial enterprises to individuals. CASL applies to all electronic messages and requires the prior consent (express or implied) of the recipient before any such message can be sent, and includes mechanisms for civil recourse as well as monetary penalties and criminal charges for non-compliance. Sections setting out a private right of action for breach (which would have opened the door to possible future class action lawsuits) were suspended by the Government of Canada, pending further review by a parliamentary committee which recommended that certain clarifications and revisions be made.

1. SC 1991, c. 46.

2. SC 2000, c. 17.

3. Department of Finance Canada, Potential Policy Measures to Support a Strong and Growing Economy: Positioning Canada's Financial Sector for the Future (August, 2017), online: https://www.fin.gc.ca/activty/consult/pssge-psefc-eng.pdf.

4. SC 2018, c. 12.

5. Competition Bureau, Technology-led innovation in the Canadian financial services sector (December, 2017), online: http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/ eng/04322.html.

6. Canadian Payments Association, Modernization Target State (December, 2017), online: https://www.payments.ca/sites/default/files/21-Dec-17/modernization_target_state_en_ final.pdf.

7. Office of the Superintendent of Financial Institutions, Pillar 3 Disclosure Requirements (April, 2017), online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/
plr3_let.aspx.

8. Office of the Superintendent of Financial Institutions, Discussion Paper: Implementation of the final Basel III reforms in Canada (July, 2018), online: http://www.osfi-bsif.gc.ca/Eng/fi-if/in-ai/Pages/biii-let.aspx.

9. Office of the Superintendent of Financial Institutions, Guideline B-20: Residential Mortgage Underwriting Practices and Procedures (October, 2017): online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/b20_dft.aspx.

10. Office of the Superintendent of Financial Institutions, Capital Adequacy Requirements (CAR) 2018 (April, 2018): online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/car18_index.aspx.

11. Office of the Superintendent of Financial Institutions, Leverage Requirements Guideline (October, 2014), para 6: online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/LR.aspx.

12. Basel Committee on Banking Supervision, Basel III: A global regulatory framework for more resilient banks and banking systems (Bank for International Settlements: December 2010, rev June 2011): online http://www.bis.org/publ/bcbs189.pdf.

13. Office of the Superintendent of Financial Institutions, OSFI Annual Report 2017-2018 (October, 2018), p. 9, online: http://www.osfi-bsif.gc.ca/Eng/Docs/ar1718.pdf.

14. Office of the Superintendent of Financial Institutions, Total Loss Absorbing Capacity (TLAC) (April, 2018), online: http://www.osfi-bsif.gc.ca/Eng/Docs/TLAC.pdf.

15. Office of the Superintendent of Financial Institutions, Total Loss Absorbing Capacity (TLAC) Disclosure Requirements Guideline and Capital Disclosure Requirements Guideline (May, 2018), online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/tlac_disc.aspx.

16. Office of the Superintendent of Financial Institutions, Superintendent formally designates Canadian D-SIBs and sets minimum loss absorbing capacity requirements (August, 2018), online: http://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/nr20180821.aspx.

17. Bank Act, SC 1991, c. 46.

18. Bank Act, SC 1991, c. 46, s. 163; Affiliated Persons (Banks) Regulations, SOR/92-325, s. 3.

19. Office of the Superintendent of Financial Institutions, Supervisory Framework (December, 2010) online: http://www.osfi-bsif.gc.ca/eng/fi-if/rai-eri/sp-ps/pages/sff.aspx.

20. Office of the Superintendent of Financial Institutions, Corporate Governance (September, 2018) Section I, online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/
gl-ld/Pages/CG_Guideline.aspx.

21. Office of the Superintendent of Financial Institutions, Composite Risk Rating and Assessment Criteria (September, 2015) online: http://www.osfi-bsif.gc.ca/Eng/fi-if/
rai-eri/sp-ps/Pages/crr.aspx.

22. Office of the Superintendent of Financial Institutions, Enterprise-Wide Model Risk Management for Deposit-Taking Institutions (September, 2017), online: http://www.osfi-bsif.gc.ca/eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/e23_let.aspx.

23. Affiliated Persons (Banks) Regulations, SOR/92-325, s. 3.

24. Office of the Superintendent of Financial Institutions, Outsourcing of Business Activities, Functions and Processes (March, 2009) Section 1, online: http://www.osfi-bsif.gc.ca/eng/fi-if/rg-ro/gdn-ort/gl-ld/pages/b10.aspx.

25. Office of the Superintendent of Financial Institutions, Basel Capital Adequacy Reporting (BCAR) (BA) (revised October, 2018), online: http://www.osfi-bsif.gc.ca/Eng/fi-if/rtn-rlv/fr-rf/dti-id/Pages/BCAR_BA.aspx.

26. SC 2001, c. 9.

27. Financial Consumer Agency of Canada, Supervision Framework (October, 2018), online: https://www.canada.ca/en/financial-consumer-agency/services/industry/supervision-framework.html.

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International legal business solutions - Global Legal Insights

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Banks in Canada have been continuously recognised as amongst the soundest and safest across the globe. Notwithstanding, the global financial crisis has led to a series of significant regulatory changes (most notably in the areas of liquidity and capital), designed to reduce the risk of another global financial crisis occurring and ensure that Canadian banks will continue to be well positioned for future challenges.

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The website which is mentioned below describes the details and functionality of Loan Basics, Checking and Savings account, CDS and Money Market Account. Moreover it also describes Auto, Personal and Student Loans.

This site is best suitable for many things, starting with the loan basics, it shows what is collateral and how the collateral works. Checking accounts shows the difference between various kinds of checking accounts. Savings account shows many things like choosing best rates, picking up the perfect institutions, funding new account and establishing beneficiaries. CDS which basically stands for Certificate of Deposits (CD), describes the details of CD ladder and what steps are included in it. Money Market Funds give brief description of the market fund and also the unique qualities of it which includes safety, low initial investment and accessibility. At the end this site shows the functionality of student, auto and personal loans.

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What is a CD Ladder

A CD ladder is a strategy in which an investor divides the amount of money to be invested into equal amounts in certificates of deposit (CDs) with different maturity dates. This strategy decreases both interest rate and re-investment risks.

Key Takeaways

A Certificate of Deposit (CD) is an investment product that offers a fixed interest rate for a specified period of time. The invested funds, which are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC), are locked in by the issuing bank until the maturity date of the CD. Maturity dates for these savings instruments are typically set at three months, six months, one year, or five years. The higher the term for which funds are committed, the higher the interest paid. To take advantage of the various interest rates offered for different periods, investors can follow a strategy known as the CD ladder.

How to Build a CD Ladder

Let's say an investor has $20,000 to invest and wants to build a four year CD ladder.

Step 1: Open Separate CDs

Rather than putting the entire funds in one CD, the investor puts $5,000 in each of four CDs maturing in one, two, three, and four years. The investor looks to find banks with the best rates on CDs before investing the funds. What the investor is starts with is:

$5,000 in a 1-year CD

$5,000 in a 2-year CD

$5,000 in a 3-year CD

$5,000 in a 4-year CD

Step 2: Renew and Convert Each CD at Maturity

As each CD matures, the investor will renew it as a 4-year CD. By doing so, after four years the investor will have four, four-year CDs but with only one of their CDs maturing annually.

If the investor had opened all of their CDs in January 2019, setting up the ladder would look like:

January 2020: renew the 1-year CD into a 4-year CD

January 2021: renew the 2-year CD into a 4-year CD

January 2022: renew the 3-year CD into a 4-year CD

January 2023: renew the 4-year CD into a new 4-year CD

This would allow the investor to leverage the higher interest rates on the longer term CDs while building the ladder and also have access to pulling out 25% of their funds from the ladder per year without penalty by virtue of one CD maturing each year.

Mini CD Ladders

A mini CD ladder is the same concept as a regular CD ladder but with shorter term CDs. You could build a CD ladder out of 3-month, 6-month, 9-month and 1-year CDs to deploy the same strategy. Keep in mind though that by building a ladder against shorter term CDs that the interest rates you'll be able to get will be lower.

Benefits of a CD Ladder

A CD ladder strategy is followed by investors who value the safety of their principal and income. This strategy also provides investors with steady cash flow as the CDs will mature at different times. By spreading the investment over CDs with varying maturities, the investor benefits from the higher interest rates of longer-term CDs and does not have to repeatedly renew a short-term certificate of deposit that holds all their funds.

CDs also offer FDIC insurance against default should a bank become insolvent. With the exception of U.S. Treasury bonds, which are also backed by the federal government, no other vehicle offers such protection for fixed-income investors.

Additionally, by laddering CDs, investors are able to customize their aggregate (or total) rate of interest, generally on the upside. For example, an investor may only purchase three-month CDs to produce quarterly cash flows, realizing a relatively low rate of return. With a laddered CD portfolio, however, they can still achieve quarterly payments, but with a much higher total portfolio rate of return, because longer maturity CDs generally pay higher interest.

Investors that put all their funds in one CD may miss out on higher interest rates that may result while their funds are locked away. With a CD ladder, however, the investor can take advantage of short-term interest rates by reinvesting proceeds from maturing CDs into newer CDs with higher interest rates. On the other hand, if interest rates fall, CD holders still enjoy the benefits of the high interest rates that their existing long-term CDs provide. A CD ladder, thus, provides regular opportunities to reinvest cash as the CDs mature, while reducing interest rate risk.

In the event that an emergency ensues and an investor needs cash, the laddering strategy ensures that the investor consistently has a CD maturing, thereby, reducing liquidity risk.

The Bottom Line

All in all, like any other investment, the practice of using laddered CDs depends entirely on your personal financial goals. Generally speaking, they are great for people who want safety of capital, predictable cash flows and simplicity. CDs are very easy to understand, to access and to structure to meet your financial goals.

On the other hand, the rates of return for CDs are generally low due to the safety they offer. Moreover, they offer no special tax treatment to save money on local, state or federal taxes; therefore, if you are in a high tax bracket, they are difficult to justify. If you are in a low tax bracket, they make a lot more sense.

Just keep in mind that the safest course of action with CDs is to go through your bank and make sure your deposits are covered by FDIC insurance limits. If you decide to go through a brokerage house, understand that you have introduced a variety of risky variables like commissions, the questionable motivations of salespeople (the broker) and potential loss of principal. Keep it simple and reap the benefits.

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A CD ladder is a strategy in which an investor divides the amount of money to be invested into equal amounts in certificates of deposit (CDs) with different maturity dates. This strategy decreases both interest rate and re-investment risks. A Certificate of Deposit (CD) is an investment product that offers a fixed interest rate for a specified period of time.

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This image gives insight on bank of Canada, Canada's  central bank. It is a main institute which provides banking services to government and loans to Canadian financial institutions. It provides a stable and efficient financial system in Canada.

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This image shows logos for different financial institutions which are spread across the entire Canada and which provides various facilities to customers. Some of them are Scotiabank, TD (Toronto-Dominion), PC, CIBC (The Canadian Imperial Bank of Commerce), BMO (Bank of Montreal) and Tangerine.

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This video is showing how Canadian bank has changed according to their  customers priorities. It is also showing that how it become more convenient by updating their facilities and making it more easy to use. It describes ratio of customers who are using their different facilities like online banking , In branch banking and also showing satisfaction levels.

We have selected this particular video as it show the statistics very precisely for the customer satisfaction and also for the in-bank transactions. This video also shows that how Canadian banks have used modern technology for providing easy access to the accounts. It also shows that banks in Canada are innovating the evolving digital preferences to their customer.

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Review of financial institution by 6 vulnerability, video describes that households are increased in some areas like Alberta, Saskatchewan. Canadian housing market imbalance is noticed. cyber theft and financial interconnection also affect banking system. the video compares risk between low to high on topics like rise in financial stress, house price, high long term interest rate by higher global risk premium. In stress test between large bank and bound mutual funds, large bank would suffer because of loss but it remain strong on other side for mutual funds it would rise interest rates and affects on market liquidity. Overall, financial business will stay constant, tough and confident with change in market.

we had selected video because it compares up and downs of bank during day to day market and give information how interest rate changes and can affect on household buying and mutual funds maturities.

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The Financial System Review in 2 minutes 2019

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Top 5 banks of Canada. The guy describes importance of bank account that if you have cash then you can buy things but if you want a house in good community you need good credit score provides by bank, also for investing in business you need bank account. Here is comparison of Canada's banks. In 1864 Royal Bank of Canada found, they have 60 millions of customers and some good deals when some one open new account. TD is one of the largest bank in world, and it gives credit card to build good credit history for international students no bank give it to student. Scotiabank found in 1832, best bank for GIC account and it offers movie scene points. too. BMO is found in 1870 and headquarter located in Toronto. CIBC merger of biggest financial institutes, they also have good deals and cash prices for opening an account.

If a person knows about all the bank and it's history and offers they give at opening an account then it would be helpful in selecting a bank for their day to day transactions. this is a reason we choose this video.

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If you have difficulties understanding financial institution of Canada this video is best teacher for you. Why someone needs to about financial institution, because it keep informed you for your expenses and give you details on your incoming and outgoing history of money. according to video in 2014 Canada has 29 domestic banks and 24 foreign banks. There are 2 types of financial institution schedule 1 and schedule 2. Schedule 1 banks are domestic banks and 2 are foreign bank subsidiaries. Big 5 schedule 1 banks are RBC, TD, BMO, CIBC, Scotiabank. they account for about 85% of banking industry in Canada. To know about bank and it's offer before opening an account go and search on banks own website where you can find all the information about the bank.

This video give information to beginner how to invest in bank and how a bank can help to secure money and what different type of institution out their to help to manage your daily expenses.

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New Beginnings Immigration Services Canada

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Different Types of Financial Institutions

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New Beginnings Legal Immigration Services Canada

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An Introduction to Canadian financial institutions.-- Created using PowToon -- Free sign up at http://www.powtoon.com/ . Make your own animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video.

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The most surprising thing that we came to know is we can get balance sheet of our day to day transaction, certificates of deposits, even one can invest in money market account if they want safe investments, it works as same as savings accounts. CD rates are safe investment in which a person divide money in small amount and maturity dates are different for all that amounts so, it reduce risk of re-investment as well interest.

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When I (Madhvi) came to Canada, I was new to financial institutes as they are different from my country. Going back few months I don't have knowledge about how banks works and I don't have any guardian here who can help me. this topic gives me in-depth information about top financial institution and how they work and how they can benefit their customers.

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After doing this much of research about the Canada's bank and financial institutions, if I could give suggestions to my family and friends it would be choose your financial institution wisely accordingly your needs as institutions have their own best things like Scotiabank best for digital interface. Be aware with all regulations, upcoming new rules or changes and financial rights and responsibilities.Always take all depth information about how that bank works. Be conscious while doing online banking and protect own selves from cyber crime,financial crisis or any financial fraud.

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INTRODUCTION: Bank of Canada and Financial institutions

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INTRODUCTION: Bank of Canada and Financial institutions

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banks and financial institutes are business who keep track for persons finance. They deal with huge transactions, some are home loans, student loans, currency exchange world wide, etc. they keep public's money safe electronically i.e., personal chequing and saving accounts, business accounts, tax free saving accounts and many more. Here we had explained some details of Canadian financial institution in depth.