Why Ontario - Diversified and Growing Economy

Financial Infrastructure

Canada has a well-developed financial system with a variety of institutions providing a complete range of financial services. Toronto is an international financial centre and the centre of Canada's capital and money markets.

Firms raising short-term funds through loans, trade credit, commercial and financial paper, acceptances or factoring, and companies seeking long-term funds through open market borrowing, new securities issues, loans, or sales financing and leaseback arrangements will find in Toronto all the financial expertise, institutions and capital markets to meet their needs.

Banks, Trust Companies and Other Financial Institutions

Canada has a stable and highly advanced financial system that is among the soundest in the world. The branch banking system is a key distinguishing feature of banking in Canada. Because Canada's chartered banks are allowed to diversify by operating in all provinces, they are good sized institutions on an international scale.

Bar chart showing Top Canadian Banks by Assets Highlights of the banking sector:

The banking industry includes 20 domestic banks, 24 foreign bank subsidiaries*, 27 foreign bank branches**, and seven foreign bank lending branches operating in Canada. In total, these institutions manage almost $2.6 trillion in assets. Most of the banks that operate in Canada have their Canadian head offices in Toronto.
There are six major domestic chartered banks (Schedule I) in Canada which account for over 85 per cent of Canada's total banking assets. They are the RBC Financial Group, Scotiabank, Canadian Imperial Bank of Commerce (CIBC), the TD Bank Financial Group, the BMO Financial Group, and the National Bank of Canada.
Canadians use a combination of banking services from bricks-and-mortar retail operations to virtual banks, which include in-branch services, ABMs, phone-based and web-based banking.

NOTES:
*	Foreign bank subsidiaries are regulated under the Bank Act and are authorized to accept deposits, which may be eligible for deposit insurance provided by the Canada Deposit Insurance Corporation.
**	Foreign bank branches are foreign institutions that have been authorized under the Bank Act to do banking business in Canada. These branches may not accept deposits of less than $150,000.

The TMX Group - The Toronto Stock Exchange and the TSX Venture Exchange

The TMX Group is the eigth largest stock exchange in the world, the third largest in North America, and a global leader in mining and natural resource financing.

TMX Group operates Canada's two main national stock exchanges, Toronto Stock Exchange, serving the senior equity market, and TSX Venture Exchange, serving the public venture equity market. More mining, oil and gas companies are listed on the Toronto Stock Exchange and the TSX Venture Exchange than on any other exchange in the world. The TMX Group had a total market capitalization of $1.8 trillion at December 31, 2009. [More]

The Regulation of Financial Institutions

The regulation of financial services is primarily the responsibility of the federal Office of the Superintendent of Financial Institutions (OSFI), which administers the Bank Act, reviews bank charters, monitors issuance of bank shares and securities, and has responsibility for federally-chartered trust, insurance, and loan companies. Ontario regulates provincially-chartered trust, insurance, and loan companies and credit unions through the Financial Service Commission of Ontario (FSCO). The Province also regulates securities dealers through the Ontario Securities Commission (OSC). Insurance companies and pension funds are subject to provincial legislation which restricts their choice of investments. [More]