Canadian Banking system is one of the best in the world for the past 6 years. Different forums in this regard have rated the system very high. It is all because of the fact that banking in Canada is highly safe and secure. There is the number of economic forums of the world that recommends the Canadian Banking system to the investors all over the world. There is state as well as the private organizations that own many banks in Canada. The RBC or the Royal Bank of Canada is among the 10 safest banks of the world. The debit cards, internet banking as well as the telephone banking are some other non-traditional forms of banking services which the Canadians enjoy.
The Big 5
There are 5 banks in Canada which are regarded as the big 5. These banks do not belong to the country. These are actually the International conglomerates which operate the consortiums of banks. The big 5 comprises of
- Royal Bank of Canada
- Toronto – Dominion Bank
- Bank of Nova Scotia
- Bank of Montreal
- Canadian Imperial Bank of Commerce
All the banks are very highly rated and therefore it is highly rated by the consumers. Apart from Canadian Imperial Bank of Commerce, every other bank is almost a century old. It means that rich banking experience can be enjoyed with these banks which are the requirement of almost every consumer. The total revenue generated by these banks is $22,462 million. The GDP contribution of the banks is high and therefore the Big 5 is highly regarded by IMF and World Bank as well.
2008 crisis and the Canadian banking system
The 2008 financial crises lead many jobless and therefore the world still remembers. The Canadian banking system was standing tall as ever during the problem. The Royal Bank of Canada, Canada Mortgage, and the US Federal Reserve joined hands to provide liquidity which is required to keep the banks up and running. The total amount which was provided to the banks was $114 billion. The CMHC mortgage program was also supported by the banks and about $69 billion was contributed to the program. This program itself provided the liquidity support to the financial institutes all over North America.
The Canadian banks are the largest ones in the world. It is to be noted that during the 80s and 90s the major banking institutes acquired all the other banking companies of the era. It was during this time that Canada became the financial hub of the world. The US markets were captured during this era and it attracted the investors further. Since that time the Canadian Banking system has been rated high i.e. 6.8 out of 7.
The Canadian Federal government is the final authority to make sure that the banks are running up and well. In case of any problem, the government takes necessary actions to make sure that the problem is overcome. It was this vigilance which saved the Canadian Banking during the 2008 crises.