Industry Analysis & Industry Trends
Despite the global financial crisis, the Commercial Banking industry in Canada fared relatively well over the five years to 2014, primarily due to its sound capital requirements and distance from the subprime mortgage crisis in the United States. In general, aggregate increases in domestic household credit; continued proliferation of mobile and online lending; and the introduction of ancillary services have benefited the industry's performance in recent years. Additionally, the industry is forecast to gain momentum over the five years to 2019, largely due to rising interest rates, improving consumer sentiment and rising corporate profit... purchase to read more
Industry Report - Starting a New Business Chapter
The Commercial Banking industry has moderate barriers to entry. An organization must receive prior approval from the Office of the Superintendent of Financial Institutions (OSFI) to initiate operations. The organization is then subject to the ongoing supervision of and regular inspections by the OSFI and provincial governments. Depending on what designation a bank receives from the OSFI, it may be restricted in its range of activities and acquisitions of competing banks.
Perhaps the largest barriers to entry for potential operators include obtaining and maintaining sufficient capital levels for operations. By the first quarter of 2014, commercial banks are expected to meet a total Tier 1 capital ratio of 8.5% and total capital ratio of 10.5%... purchase to read more