Canada’s Banking Industry

Rohan AppaduraiRetd. Managing Director and

Head, International Banking & Mining Finance

Canadian Banking Industry

Cdn. Banking Industry is dominated by the Big Six (oligopoly)

Regulated by the Bank Act

Supervised by OSFI

Better Capitalized (reserves, liquidity)

Conservative Risk Appetite

Deposit taking Institutions

Better Credit ratings (access to capital)

Ownership restrictions

Canadian Banking Industry

2008 Financial crisis – Cdn banks performed better than a number of their US and European peers.

Contrast JPM, BoA, Citi to Goldman Sachs (Buffett), Morgan Stanley (BOTM) and Merrill Lynch (BOA)

International role of Cdn banks

TD: North American focus (Retail/Business/Cards)

RBC: Wholesale banking (Lehman/Bear Stearns)

Scotia: International – S. America (lending)

BMO: Harris & MI bank (US mid west)

CIBC: Cdn/Wealth

National: Domestic focus

Typical Banking Services Retail/Wealth/Asset

management/Cards/Insurance

Business Banking

Wholesale – Investment banking

Credit

Advisory (M&A)

Relationship Management

Equity

Fixed Income (DCM, Govt’s Corporates, HY)

Transaction Banking (Cash management, Correspondent Banking, Trade finance)

Top 18 Safest Commercial Banks: Global Finance 2014

1.TD Bank Group 2. DBS Bank 3. Oversea-Chinese

Banking Corporation 4. United Overseas Bank 5. Rabobank 6.Royal Bank of Canada 7. National Australia Bank 8. Commonwealth Bank of

Australia 9. ANZ Group

10. Westpac 11. Nordea 12. Bank of Nova Scotia 13. Svenska

Handelsbanken 14. Hang Seng Bank 15. Caisse centrale

Desjardins 16. HSBC 17. Bank of Montreal 18. CIBC