Check out the Powerhouse Banks that Rule the Financial Landscape in Canada
Canada is known to have a strong banking system, with multiple banks offering a wide range of financial services. However, the Canadian banking system's performance was hampered in 2017 as a result of reduced government support and aid, leading to a negative outlook. In this article, we explore the top 10 banks in Canada and provide an overview of the structure and financial status of the Canadian banking system.
Issues with Government Support:
The Canadian government's lack of support for the banking system has created challenges, particularly in the face of high mortgage debts. This has resulted in a moderate rise in unemployment rates and interest rates. Despite these issues, the banks have continued to perform well.
Structure of Banks in Canada:
Canada's banking system is categorized into five broad categories, which are Chartered Banks, Cooperative Credit Movement, Life Insurance Companies, Trust and Loan Companies, and Security Dealers. As of August 2017, there were 29 domestic banks, 24 foreign banks, 27 foreign bank branches, and three foreign bank lending branches providing banking services in Canada.
The total amount of assets managed by financial institutions in Canada is around C $4.6 trillion, with 70% of these assets controlled by the top six banks. This underlines the dominance of a few key players in the industry.
List of Top 10 Banks in Canada:
- The following are the top 10 banks in Canada based on the total assets they control.
1. Toronto-Dominion Bank: With around C$1.202 trillion in assets, this bank is the largest in Canada and ranked as the 66th largest bank in the world.
2. Royal Bank of Canada: The second-largest bank in Canada, handling total assets of approximately C$1.201 trillion, and generating revenue of C$42.8 billion in 2020.
3. Bank of Nova Scotia: The third-largest bank in Canada, with total assets of around C6.332 billion, generating revenue of C$25.3 billion in 2020.
4. Bank of Montreal: The fourth-largest bank in Canada by total assets at approximately C8.617 billion, and generating revenue of C$22.2 billion in 2020.
5. Canadian Imperial Bank of Commerce (CIBC): The fifth-largest bank in Canada in total assets, with approximately C$560.912 billion, generating a net profit of C$3.79 billion in 2020.
6. Desjardins Group: Although not a bank, it is North America's largest association of credit unions, handling total assets of C$377.0 in 2020.
7. National Bank of Canada: Controlling total assets of around C$343.6 billion and generating revenue of C.8 billion in 2020.
8. HSBC Bank Canada: A foreign subsidiary of the global HSBC Bank, with total assets of C$115.0 billion in 2020.
9. Laurentian Bank of Canada: The ninth-largest bank in Canada, with total assets of C$45.2 billion and generating revenue of C44.7 million in 2020.
10. Canadian Western Bank: Established in 1988, it has total assets of C$35.3 billion, generating revenue of $270.6 million in 2020.
The Canadian banking system is highly stable, despite challenges posed by the government's lack of support. The top six banks dominate the system, and the largest institutions have assets worth trillions of dollars. The top 10 banks in Canada have demonstrated considerable resilience and growth in recent years, making Canada's banking sector one of the most robust in the world.
Are you grappling with the best way to save for retirement? With the countless options available, it can be overwhelming! But not to worry, there is an option that often gets overlooked - the IRA savings account. This safe and interest-bearing account can be the perfect sidekick on your retirement
The assets that are swept to the Vanguard Federal Money Market Fund have a secure home in the VBS division of Vanguard Marketing Corporation. VBS is a member of the FINRA and SIPC, so the assets hold SIPC coverage for securities. It is important to keep in mind that the assets are not guaranteed by FDIC
Our Plans Suit EveryoneWe cater to businesses, nonprofits, families and trustees, without any bias. Our diverse range of investment and trading plans suit numerous investors or traders, which also includes a plan that's perfect for you.Explore our pricing and ratesOur Popular PlansIf you're planning to
The Internal Revenue Service (IRS) requires all interest earned in savings accounts, including those with high-yield rates, certificates of deposits, and money market deposit accounts, to be reported as taxable income on your tax return. Your bank will typically send you a 1099-INT form for any interest