Published • loading... • Updated
Trump Falsely Says U.S. Banks Cannot Operate in Canada
Experts say 15 U.S.-based banks operate in Canada, but deposit limits and other rules can make retail expansion difficult.
- On Wednesday, President Donald Trump falsely claimed in the Oval Office that U.S. banks cannot operate in Canada during a meeting with travel executives. However, 15 U.S.-based banks currently conduct business there as branches or subsidiaries.
- Confusion likely stems from differing regulatory systems between the U.S. and Canada, said James Thompson, a professor of finance at the University of Waterloo. Most U.S. banks operate as Schedule III institutions, which face specific regulatory restrictions compared to domestic banks.
- Nathalie Bergeron, a spokesperson for the Canadian Bankers Association, noted that U.S.-based bank subsidiaries in Canada hold approximately $124.6 billion in assets. Eight Canadian banks currently operate in the United States, according to Federal Reserve data.
- Schedule III banks cannot accept deposits below $150,000, explained Jeremy Kronick, CEO of the Canadian C.D. Howe Institute, limiting their appeal to retail customers. These regulatory barriers, combined with established incumbent brands, make competing for Canadian customers difficult.
- Experts emphasize that U.S. banks are free to enter the Canadian market, though the Bank of Canada operates as a central bank, not a commercial enterprise. Market entry requires navigating infrastructure costs and competing against large, established incumbent institutions.
Insights by Ground AI
26 Articles
26 Articles
Donald Trump claims that US banks are not allowed to do business in Canada. That's not true: 15 US banks are already active there as branches or subsidiaries.
·Berlin, Germany
Read Full Article
The Toronto Star+6 Reposted by 6 other sources
FACT FOCUS: Trump claims US banks cannot operate in Canada. That’s not true
Asked about the trade war with Canada on Wednesday, President Donald Trump falsely claimed that U.S. banks are not allowed to do business with its neighbor to the north.
·Toronto, Canada
Read Full Article
Associated Press News+16 Reposted by 16 other sources
FACT FOCUS: Trump claims US banks cannot operate in Canada. That's not true
President Donald Trump falsely claimed on Wednesday that U.S. banks are not allowed to do business in Canada. There are currently 15 U.S.
·New York, United States
Read Full ArticleCoverage Details
Total News Sources26
Leaning Left11Leaning Right3Center11Last UpdatedBias Distribution44% Left, 44% Center
Bias Distribution
- 44% of the sources lean Left, 44% of the sources are Center
44% Center
L 44%
C 44%
12%
Factuality
To view factuality data please Upgrade to Premium
