The Safety of Canada Banks

May 5, 2010 - PRLog -- Historically and even through the latest financial crisis that started well over three years ago, the Canadian Banking system remains broadly considered the safest and most proficient and effective banking system the world over.  Canada banks, also known as chartered banks maintain over 8,000 branches nationally and over 18,000 ATM machines in operations across the country.  By deploying and maintaining the largest number of Automated Banking Machines per capita in the world today, it’s no wonder Canada enjoys the highest penetration levels of electronic banking services such as debit cards, internet banking, an telephonic banking.

Canadian banks are the foundation of the country’s financial system and are generally classified into two categories with the five largest banks falling into the first category and the smaller second tier banks that operate within a three schedule system.  Schedule one banks are allowed to accept deposits and are not subsidiaries of foreign banks.  The schedule two banks are allowed to accept deposits and are subsidiaries of foreign banks.  The third schedule banks are foreign owned banks that are permitted to conduct business in Canada.

As early as the 1980’s and into the 1990’s Canada’s largest banks acquired nearly all the central trust and brokerage companies operating within its borders and embarking on building their own mutual funds and insurance businesses.  When bank mergers were ruled out by the Canadian government, many banks turned to expansion internationally, especially within the various banking and brokerage markets of the United States.  Another notable success for the Canadian banking industry was it’s slow emergency of Non-Bank Mortgage origination companies, what many experts say was the downfall of so many other financial systems throughout the world.

The five largest banks in Canada making up the most successful banking system in the world, according to a survey conducted by the World Economic Forum, are the Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal, Bank of Nova Scotia, and the Canadian Imperial Bank of Commerce.  Canada Banks continue to grow and lead the world’s financial sector by being both innovative and conservative at the same time and employing the branch less banking model that continues to be a model of low cost and efficiency. Find out more here http://www.economywatch.com/banks/commercial-banks/canada/

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