THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS 301

CHAPTER 11 TA B L E 11- Banking Industry: Structure and Competition 269 Canadian Banks (as of March 31, 2009) Date of Establishment Assets ($ millions) Percent (%) of Bank Assets RBC Financial Group 1869 725 704 23.12 Canadian Imperial Bank of Commerce 1961 357 714 11.40 BMO Financial Group 1822 472 813 15.07 Scotiabank 1832 522 921 16.66 TD Bank Financial Group 1955 603 913 19.24 National Bank of Canada 1980 143 815 4.58 826 880 90.07 Bank The Big Six Big Six Subtotal Laurentian Bank of Canada 1987 20 488 0.65 Canadian Western Bank 1988 11 460 0.37 858 828 91.09 166 048 5.29 Eight Domestic Banks Subtotal Other Banks Domestic Banks Foreign Banks Total 113 561 3.62 138 437 100.00 Source: OSFI website www.osfi-bsif.gc.ca Reprinted with permission a Schedule III bank The difference between Schedule II and Schedule III banks is that a Schedule II bank is a Canadian subsidiary of a foreign bank whereas a Schedule III bank is a foreign bank allowed to branch directly into Canada, under certain restrictions (to be discussed later in the chapter) Competition Although Canada has a small number of banks relative to other countries, Canadians and Technology enjoy one of the most dynamic and competitive financial services industries Besides chartered banks, there are over 4000 financial institutions providing financial services These include trust and mortgage loan companies, credit unions and caisses populaires, government savings institutions, insurance companies, pension funds, mutual funds, and investment dealers New technology and the Internet have also helped in the development of a more competitive and innovative banking system in Canada They have enabled new entrants to come into the Canadian financial services market and provide increased competition to the Big Six For example, ING Canada, a Canadian banking subsidiary of a major Netherlands banking and insurance conglomerate, and Citizen Bank, a subsidiary of Vancouver City Savings Credit Union, are virtual banks offering an array of banking services on the Internet In addition, U.S credit card banks, such as MBNA and Capital One Financial Corporation, are now offering specialized credit card products in Canada, and Wells Fargo, one of the largest banks in the United States, provides loans to Canadian small businesses from the United States