Chartered Banks: Notes for Banking and Financial Statistics

Access notes on banking and financial statistics for chartered bank activity since 1990.

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Canada’s commercial banking system consists of privately owned banks that have been chartered by Parliament or have received letters patent by order-in-council as provided for in the 1991 Bank Act. The 1980 Bank Act first provided for Canadian financial institutions affiliated with foreign banks to become incorporated as Canadian banks and allowed the establishment of new foreign-owned banks in Canada. Beginning February 2000, foreign banks were also permitted to operate branches in Canada. To see which banks (domestic banks, foreign subsidiaries and branches) are currently operating in Canada, please visit OSFI for more details. The banks operate under the terms and provisions of the Bank Act, which defines their range of activities and regulates certain internal aspects of their operations as well as their relationship with the government and the Bank of Canada. Under the Act, the banks are required to submit reports on their operations to the Office of the Superintendent of Financial Institutions and the Bank of Canada. The data in Chartered Banks tables and Monetary Aggregates and Credit Measures tables are based on these reports and include the principal banking statistics. It has been the practice to revise the Bank Act at approximately 10-year intervals. The most recent revision was in 1991. As a result of these revisions, as well as periodic changes in regulations and changes in the structure of the industry due to mergers, earlier data are not always strictly comparable. Users are referred to the notes to the tables in the December 1982 Review and earlier issues of the Review for a description of the impact on the data of Bank Act revisions. Coincident with the 1980 Bank Act revision, the reporting system was substantially revised, and the new system was implemented on 1 November 1981. The level of consolidation and the treatment of accrued interest were two of the more significant changes. Users should refer to the article in the November 1981 issue of the Review for an overview of the changes. Starting in November 1993 additional revisions to the chartered banks’ reporting system were implemented. Users should refer to the article in the winter 1993-94 issue of the Review for an overview of the changes.

Beginning January 2011, the Canadian Accounting Standards Board (AcSB) adopted International Financial Reporting Standards (IFRS). Chartered banks converted to IFRS at the start of their first fiscal year following 31 December 2010. The most significant effect relates to the inclusion of securitized loans on banks’ balance sheets, which were previously shown as loans held by Special Purpose Corporations or NHA mortgage- backed securities. This reallocation of credit primarily affects the January and November 2011 reference months.

Beginning November 1993, chartered banks reported treasury bills and other securities at their amortized value if held in investment accounts or at market value if held in trading accounts (including those at investment dealer subsidiaries). Since most of these securities were held in investment accounts, Chartered Banks tables continued to make reference to holdings at amortized value; users should note, however, that the data also include some securities valued at market. Beginning with data for the first fiscal quarter of 2007, such assets are marked-to-market in accordance with applicable Canadian accounting standards.

The continuity of chartered bank statistics has been affected at times by the conversions of non-bank financial institutions. La Banque Populaire (previously a savings bank, La Banque d’Économie de Québec) commenced operations as a chartered bank on 10 November 1969. As a result, Canadian dollar deposits of the chartered banks at 30 November 1969 were increased by $66 million. The principal asset items affected were general loans, other residential mortgages and provincial and municipal securities. On 4 June 1979, the Continental Bank of Canada began operations, initially as a wholly owned subsidiary of IAC Limited; the two institutions merged on 1 November 1981. Citibank Canada merged with three Canadian subsidiaries of its parent company, Citibank N.A., effective 1 November 1982.

The Laurentian Bank (previously Montreal City and District Savings Bank) commenced operations as a chartered bank on 28 September 1987. As a result, Canadian dollar deposits of the chartered banks were increased by $3,565 million at that date. The principal asset items affected were residential mortgages, corporate securities and general loans. On 25 January 1988, the Laurentian Banking Group purchased Eaton-Bay Trust. Upon acquisition, the Laurentian Banking Group divided the acquired assets and liabilities among its three companies. As a result, Canadian dollar deposits of chartered banks at 31 January 1988 were increased by $207 million. The principal asset items affected were mortgages and securities.

On 29 May 1990, $264 million in consumer loans to Canadian residents on the books of American Express were transferred to Amex Bank of Canada when it began operations as a chartered bank.

On 28 June 1991, the Laurentian Bank of Canada acquired the selected assets and liabilities of Standard Trust Company. As a result, Canadian dollar deposits of the chartered banks were increased by $1,285 million on that date. The principal assets affected were residential mortgages and treasury bills.

On 1 November 1991 the Laurentian Bank of Canada acquired La Financière Coopérants Inc. Canadian dollar liabilities were increased by $973 million. The principal asset items affected were personal loans and residential and non-residential mortgages.

On 3 March 1992, Laurentian Bank acquired Guardian Trust. As a result, Canadian dollar deposits of the chartered banks were increased by $427 million. The principal assets affected were residential and non-residential mortgages.

On 2 July 1992, the Canadian Imperial Bank of Commerce acquired Morgan Trust. As a result, Canadian dollar deposits of the chartered banks were increased by $257 million. The principal assets affected were residential mortgages.

On 1 January 1993, the Toronto-Dominion Bank purchased assets and liabilities of Central Guaranty Trust Company and Central Guaranty Mortgage Company. As a result, Canadian dollar liabilities of the chartered banks increased by $10,990 million effective that date. The principal assets affected were mortgages and personal loans.

On 1 January 1993, Manulife Bank of Canada was formed from the merger of Regional Trust, Cabot Trust, and Huronia Trust. Effective that date, deposits of the chartered banks increased by $840 million. The principal assets affected were mortgages.

On 1 February 1993, the Laurentian Bank of Canada purchased General Trust Corporation. Effective that date, deposits of the chartered banks increased by $1,367 million. The principal assets affected were mortgages.

On 21 July 1993, the National Bank of Canada purchased Trust General of Canada and Sherbrooke Trust Company. Effective that date, deposits of the chartered banks increased by $3,061 million. The principal assets affected were mortgages.

On 1 September 1993, Royal Bank of Canada purchased Royal Trust Company, Royal Trust Corporation, and certain other operating subsidiaries of Gentra Inc. Effective that date, deposits of the chartered banks, on a consolidated basis, increased by $14,637 million. The principal assets affected were mortgages.

On 24 January 1994, the Laurentian Bank of Canada purchased the principal assets and liabilities of Prenor Trust Company. Effective that date, deposits of the chartered banks increased by $810 million. The principal assets affected were mortgages.

On 12 April 1994, the Bank of Nova Scotia purchased the Montreal Trust Company. Effective that date, deposits of the chartered banks increased by $8,998 million. The principal assets affected were mortgages.

On 7 September 1994, the Bank of Montreal purchased Burns Fry Ltd. Effective that date, deposits of the chartered banks increased by $307 million.

On 3 October 1994, the National Bank of Canada purchased deposits of the Confederation Trust Company. Effective that date, deposits of the chartered banks increased by $669 million.

On 19 December 1994, the Toronto-Dominion Bank purchased mortgages of the Confederation Trust Company. Effective that date, residential mortgages of the chartered banks increased by $200 million.

On 1 January 1995, the Canadian Western Bank purchased North West Trust Company. Effective that date, deposits of the chartered banks increased by $561 million. The principal assets affected were mortgages.

On 27 March 1995, the Hongkong Bank purchased deposits of the Income Trust Company. Effective that date, deposits of the chartered banks increased by $192 million.

On 1 August 1995, the Hongkong Bank acquired Metropolitan Trust Company. Effective that date, deposits of the chartered banks increased by $374 million. The principal assets affected were mortgages.

On 1 October 1995, Laurentian Bank acquired North American Trust Company and NAL Mortgage Company. Effective that date, deposits of the chartered banks increased by $2,491 million. The principal assets affected were residential mortgages and personal loans.

On 31 October 1995, the Canadian Imperial Bank of Commerce acquired FirstLine Trust Company. Effective that date, deposits of the chartered banks increased by $587 million. The principal assets affected were residential mortgages.

On 22 December 1995, the Bank of Montreal acquired Household Trust. Effective that date, deposits of the chartered banks increased by $1,052 million. The principal assets affected were residential mortgages.

On 1 June 1996, the Laurentian Bank acquired Savings and Investment Trust Company. Effective that date, deposits of chartered banks increased by $569 million. The principal assets affected were residential mortgages.

In July 1996, Canadian Western Bank purchased Aetna Trust Company. Effective that date, deposits of the chartered banks increased by $263 million. The principal assets affected were non-residential mortgages.

On 1 November 1996, the National Bank of Canada acquired Municipal Savings and Loan Corporation. Effective that date, deposits of the chartered banks increased by $832 million. The principal assets affected were residential mortgages.

On 1 November 1996, the Royal Bank of Canada purchased Richardson Greenshields. Effective that date, deposits of the chartered banks increased by $601 million.

On 20 January 1997, Citizens Bank of Canada was formed from Citizens Trust Company. Effective that date, deposits of the chartered banks increased by $548 million. The principal assets affected were residential mortgages.

On 9 August 1997, ING Trust Company of Canada became a bank (ING Bank of Canada). Effective that date, deposits of the chartered banks increased by $45 million.

On 14 August 1997, the Bank of Nova Scotia purchased National Trust and Victoria and Grey Mortgage Corporation. Effective that date, deposits of the chartered banks increased by $12.8 billion. The principal assets affected were mortgages and personal loans.

On 26 April 1999, the Royal Bank of Canada purchased Connor Clark Private Trust Company. Effective that date, deposits of the chartered banks increased by $921 million. The principal assets affected were residential mortgages.

On 11 August 1999, Canada Trust purchased five Citibank retail branches. Effective that date, deposits of the chartered banks decreased by $337 million. The principal assets affected were residential mortgages.

On 13 August 1999, the National Bank of Canada purchased First Marathon Inc. Effective that date, deposits of the chartered banks increased by $245 million.

On 1 February 2000, the Toronto-Dominion Bank purchased Canada Trust. Effective that date, deposits of the chartered banks increased by $41.7 billion. The principal assets affected were personal loans.

On 1 March 2000, Laurentian Bank purchased Sun Life Trust. Effective that date, deposits of the chartered banks increased by $1,783 million. The principal assets affected were residential mortgages.

On 2 May 2001, State Street Trust became a bank (State Street Bank and Trust Company). Effective that date, deposits of the chartered banks increased by $1,622 million.

On 23 June 2001, Bank of Nova Scotia purchased Fortis Trust Corporation. Effective that date, deposits of the chartered banks increased by $52 million. The principal assets affected were residential mortgages.

On 28 December 2001, the Canadian Imperial Bank of Commerce purchased the Canadian private client business of Merrill Lynch Canada Inc. Effective that date, deposits of the chartered banks increased by $1.8 billion. The principal assets affected were personal loans.

On 1 August 2002, Pacific & Western’s eTrust of Canada became a bank (Pacific & Western Bank of Canada). Effective that date, deposits of the chartered banks increased by $625 million. The principal assets affected were personal loans.

On 1 July 2003, Canadian Tire Financial Services became a bank (Canadian Tire Bank). Effective that date, personal loans of the chartered banks increased by $1,980 million.

On 15 December 2003, Sears Financial Services Ltd. and Sears Acceptance Co. merged to form Sears Canada Bank. Effective that date, personal loans of the chartered banks increased by $2,866 million.

On 31 March 2006, Bank of Nova Scotia purchased Maple Trust Company. Effective that date, deposits of the chartered banks increased by $1.1 billion. The principal assets affected were residential mortgages.

On 1 August 2012, B2B Bank (a wholly owned subsidiary of Laurentian Bank) purchased AGF Trust. Effective that date, deposits of the chartered banks increased by $2.8 billion. The principal assets affected were personal loans and residential mortgages.

As a result of a financial institution reclassifying loans from mortgages to non- mortgages, aggregate bank balance sheet data are inconsistent from January 2002 - September 2011 between Chartered bank selected assets: Monthly average (formerly C1); Non-mortgage loans, Personal, Total (V36717) and Mortgages, Residential (V36724) and Chartered bank assets: Month-end (formerly C3); Loans, Non-mortgage loans, Personal loans (V36924) and Mortgages, Residential (V36918).

On 27 July 2012, Royal Bank of Canada purchased the remaining 50% share of RBC Dexia. Effective that date, deposits of the chartered banks increased by $3 billion.

On November 2012, Bank of Nova Scotia purchased ING Bank of Canada. This acquisition resulted in a reclassification between detailed deposits categories published in Chartered bank selected liabilities: Monthly average (formerly C2) and Selected monetary aggregates and their components (formerly E1). Continuity adjustments in table Selected monetary aggregates and their components (formerly E1) have been updated to account for this reclassification.

On 1 February 2013, Royal Bank of Canada purchased Ally Financial Inc. Effective that date, deposits of the chartered banks increased by $3.5 billion. The principal assets affected were personal loans and business loans.

On 1 July 2013, Equitable Trust became Equitable Bank. Effective that date, deposits of the chartered banks increased by $6.0 billion. The principal assets affected were residential and non-residential mortgages.

On 1 January 2017, Concentra Financial Services Association became Concentra Bank. Effective that date, deposits of the chartered banks increased by $3.4 billion. The principal assets affected were residential and non-residential mortgages.

On 11 June 2018, Equity Financial Trust became Haventree Bank. Effective that date, deposits of the chartered banks increased by $1.3 billion. The principal assets affected were residential mortgages.

Standard Chartered, PwC make case for programmable CBDC in China Greater Bay Area

British multinational bank Standard Chartered and PwC China have teamed up to produce a white paper on applications for central bank digital currency (CBDC) in the so-called Greater Bay Area of China — Guangdong Province, Hong Kong and Macao. Programmability will make all the difference, they concluded.

The Greater Bay Area (GBA) presented an interesting test case because of the multiple currencies used in multiple jurisdictions. Macao uses the pataca, whereas Hong Kong uses the Hong Kong dollar and China the yuan. About 3.8 trillion yuan (US$535 billion) of cross-border trade was carried out in the region in 2021, according to the report.

Programmable CBDC has been under investigation in Hong Kong. It offers a range of advantages, the report said:

“The successful launch of programmable use cases in the GBA could provide a foundational framework for how other CBDCs could interact in cross-border commercial scenarios.”

“Widespread commercial adoption hinges on collective efforts between industry participants to better serve their customers,” the report added. CBDC smart contracts could be launched in the implementation of cross-border trade, in the supply chain for invoice settlement and added currency flexibility, and by retailers for streamlining service and loyalty programs by using a single multicurrency wallet.

Related: Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin

The report looked at CBDC-based loyalty programs in detail. More user-friendly loyalty programs would benefit smaller retailers whose programs consumers would otherwise be less likely to enroll in. Payment service providers could also take advantage of smart contracts for Know Your Customer (KYC) processes, the report said.

The Hong Kong Monetary Authority recently launched an e-HKD CBDC pilot project that looks at a range of use cases, including tokenization.

Magazine: Ripple, Visa join HK CBDC pilot, Huobi accusations, GameFi token up 300%: Asia Express

Vietnam’s exports of goods to hit US$618 bln by 2030: Standard Chartered

The information was highlighted in Standard Chartered's report themed "Future of Trade: New opportunities in high-growth corridors" released on May 31. 

Meanwhile, the nation's imports are predicted to hit US$578 billion by 2030 with the average annual growth rate of 6.9 percent during the 2021-2030 phase.  

According to Standard Chartered, Viet Nam is set to become a key high-tech manufacturing hub in ASEAN. 

In addition to its large and educated workforce and competitive manufacturing costs, the nation also benefits from its wide-reaching web of free trade agreements (FTAs) across North America, Asia and Europe. 

These fundamentals, conducive to manufacturing and trade are expected to continuously drive Viet Nam's economic development and competitiveness. 

Besides, Viet Nam continues to attract major global businesses in recent years to set up their manufacturing bases in the market. 

To further integrate itself into the international trade system, the country is also improving the quality of the market's logistics infrastructure. 

Mainland China, the Republic of Korea and the U.S. are expected to be Viet Nam's key trade partners in the coming years. Trade with India, Singapore and Indonesia is forecast to experience robust growth from 2021 to 2030, noted the bank. 

Viet Nam is estimated to have the world's second-largest exploitable rare earths resources, after Mainland China. Rare earths are critical raw materials for electric vehicles and wind turbines, which are key to the clean energy transition. 

The market is well-positioned to play a key role in the fast expanding global rare earths supply chain, as other markets look to widen their supply base. Additionally, as the market moves into higher-end metal production, Viet Nam's iron, steel and nickel exports will continue to dominate export growth in coming years, forecasted Standard Chartered.

To support the market's ambition to become a manufacturing hub for consumer electronics in Southeast Asia, the nation imports key electronics components, such as integrated circuits, micro assemblies and electrical apparatus as inputs and tools, to produce finished electronics goods for exports. 

Viet Nam's booming industries including construction, automobiles and home appliances, are expected to drive the imports for steel and iron over the next decade. 

This growing demand is expected to drive imports from partners such as Mainland China, India and Indonesia.

The total value of Viet Nam's export and imports in 2022 was estimated at US$732 billion, up 10 percent from 2021, reported the Ministry of Industry and Trade (MOIT)./. VGP