Canada’s finance minister François-Philippe Champagne has proposed raising the equity threshold for bank ownership from C$12 billion to C$25 billion. This change will allow mid-sized lenders, known as challenger banks, to grow while maintaining single-investor control. The move aims to increase competition against the Big Six banks that dominate the financial sector.
Additionally, foreign bank divisions in Canada will not need a public float if their equity is under C$8 billion, provided the parent bank is widely held and listed abroad. The government also plans to increase deposit insurance limits to C$250,000 per account from the current C$100,000.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing