Canadian Bankers Association | Backgrounders on Banking Issues

Canada’s Strong Banking System: Benefitting Canadians

Canadian Bankers Association — Fri, 25 May 2012 05:00:00 +0000

Fast facts

84% of Canadians give banks a good to excellent performance rating when it comes to being stable and secure¹
92% agree that the strength of large Canadian banks is critical to the health of the overall economy²
The World Economic Forum has ranked Canada’s banking system as the most sound in the world, four years in a row³
91% of Canadians are confident that their deposits are secure⁴

The bottom line

Canada’s banks are well managed, well regulated and well capitalized. Our strong and resilient banking system is at the heart of Canada’s economic recovery.

Canada has a national banking system with diversified, well-managed institutions

Canada’s banks are well-diversified organizations; investment banks are anchored by solid deposit-taking institutions.
Canada’s system of national institutions diversifies regional risk, so a downturn in an individual economic sector is balanced. And a national system contributes to economic growth by moving funds from areas of excess deposits to regions where growth is creating demand for new credit.
Banks in Canada make lending decisions on a case-by-case basis, extending credit to those who have the capacity to repay their loans. This prudent approach is a key reason why banks in Canada have largely avoided the problems that have plagued banks elsewhere.
In a survey by the Strategic Counsel, 81% of respondents believe that prudent lending is a key reason Canadian banks have performed better than their international peers.

Canada has a strong regulatory system

Canada has a streamlined bank regulatory system, with two primary regulators: the Office of the Superintendent of Financial Institutions (OSFI) for prudential regulation and the Financial Consumer Agency of Canada (FCAC) for consumer matters. In contrast, the United Stated has a complex network of different regulators.
Canada’s Bank Act is reviewed and updated every five years to ensure the regulatory structure is keeping pace with changes in the industry.
Canada has been recognized by the International Monetary Fund and others as having a sound regulatory system.

Canada’s banks are well-capitalized

Banks in Canada are among the best capitalized in the world, exceeding Bank for International Settlements’ norms by significant margins. This allows banks to continue lending and provides a cushion against loan losses, which tend to increase during economic downturns.
Banks have been strengthening their capital levels by raising new capital from investors in the marketplace.

Mortgage lending in Canada is stable and prudent

Canada’s mortgage market has several fundamental differences from the US market.

Canada does not have the same problems with sub-prime mortgages that have been at the root of the problem in the US. In Canada, the vast majority of mortgage loans are prime.
There are many high-risk mortgage products in the US that do not exist in Canada. These include: adjustable-rate mortgages, with unrealistically low introductory interest rates that can rise substantially; interest-only payments, where the mortgage principal is never lowered; negative amortization payment schedules, with payments that are less than the interest charged; and no-documentation lending.
When American house prices decreased, many borrowers found that their mortgage was higher than the value of their house and unaffordable. Canadian mortgage products have not had these high-risk features and have stood the test of time as interest rates and house prices go up and down. As a result, Canadian homeowners have maintained a healthy amount of equity versus debt in their homes. Among homeowners with mortgages, the average amount of home equity in Canada stands at 66 per cent of total home value.⁵
Canadian lenders tend to hold the mortgages they originate. In the US the model was an "originate to distribute" model (through securitization). Canadian mortgage originators have a much greater incentive to be prudent because they directly bear the consequences of imprudent lending decisions.
In Canada, bank mortgages with less than 20% down must be insured. This is not the case in the US.
Canadians are careful borrowers. In January 2012, just 0.38% of mortgages were in arrears.⁶ The rate of arrears in the US is more than ten times higher than in Canada.

A strong and stable banking system benefits all Canadians

As taxpayers: Canadians have not had to bail out financial institutions, inject capital into institutions, or set up public entities to buy toxic assets.
To maintain consumers’ access to credit in an environment of stalled global credit markets, the Canadian government acted to increase liquidity by buying more than $69 billion of safe, insured mortgages from the banks through the Insured Mortgage Purchase Program, which has now ended. The Canadian government expected to earn a profit from this initiative.
As consumers: Canadians continue to have access to a banking system that is accessible, affordable and competitive.
Canadians remain confident in the safety of their deposits, and continue to make use of affordably-priced credit. Lending to consumers has increased throughout the economic downturn.⁷
As business owners: Canada’s banks remain open for business and committed to providing credit. Banks have been filling a credit gap as some other lenders have exited the market.
According to the International Monetary Fund, “Financial conditions have tightened… but strains are considerably less severe than in other major countries, and credit growth remains solid, both of which reflect a resilient financial system.”
As investors: Most Canadians are shareholders in Canada’s banks either directly, or through the CPP, pensions and mutual funds. Pension funds and RRSPs are key beneficiaries of the billions of dollars of dividends that banks pay each year.

The health of Canada’s banking sector means banks can continue, as always, to contribute substantially to the Canadian economy, including:⁸

$8.65 billion in taxes paid to all levels of government.
Contributed approximately 3.4% or $55.5 billion to Canada’s GDP.
Employed 274,000 Canadians. Full-time bank employment has increased 25.4% in the past 10 years.
Paid $11.1 billion in dividends (2011) to shareholders.
Provided financing to 1.6 million small and medium-sized businesses.
Provided multi-million dollar support for Canada's charities and not-for-profit community groups.

A strong and stable banking system is at the heart of Canada’s economic recovery.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

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Banks and the Economy

Canadian Bankers Association — Thu, 24 May 2012 05:00:00 +0000

Fast facts

274,000 Canadians are employed by banks in Canada
Banks provide start-up and growth financing to more than 1.6 million Canadian SMEs
Canada’s largest six banks paid $8.65 billion in taxes to all levels of government in Canada in 2011
Canada’s profitable banks provided $11.1 billion in dividend income to millions of Canadians in 2011
The banking sector helps Canada grow, generating over $55.5 billion / 3.4% of gross domestic product (GDP)

The bottom line

Strong banks are needed more than ever to help families buy a home, help Canadians save for retirement, help small businesses to grow and thrive, and help promote Canada’s brand internationally that this country is a great place to do business.

Contributing to the Canadian Economy

Canada’s financial services sector is an essential contributor to the country’s economic growth and well-being. Banks are leading taxpayers, progressive employers and major purchasers of goods and services from Canadian suppliers as well as being good corporate citizens. And Canadians understand the industry’s importance to the country’s economy. Three- quarters (76%) of Canadian believe that banks are doing an important job in contributing to Canada’s economic recovery. And almost nine-in-ten (87%) Canadians continue to believe that a strong banking sector that is able to compete on the international stage and support Canadian businesses is important.

Serving small business

Banks have relationships with nearly two million small businesses, providing products and services that range from accounts and merchant payment processing solutions to payroll and international trade services. Banks also provide financing, as do a wide variety of alternative financing providers.

Domestic and other banks provide approximately 67 per cent of small business financing, with other sources including credit unions and caisses populaires, finance companies, Portfolio mangaer, financial funds and insurance companies

Despite the recent economic downturn, banks have continued to provide financing to both consumers and businesses, including small businesses. The banking industry also assists Canadian businesses by supporting knowledge and skill-based initiatives. Some examples include:

CBA small business online information resources
Bank websites offer numerous tools, including business planning and budgeting templates
Participation by bankers in local workshops and ‘access to experts’ programs
Support for entrepreneurial studies programs at post-secondary institutions

We’re good customers, too: The banking industry is a major purchaser of goods and services from outside suppliers, spending $15.2 billion in 2010.

Banks as taxpayers

Canada’s banking industry is one of the highest taxed sectors in the country. Canada’s six largest banks paid $8.65 billion in taxes to all levels of government in Canada in 2011.

Canadians as shareholders

Most Canadians are shareholders in Canadian banks either directly through share ownership or through pension funds and mutual funds, including the Canada Pension Plan. Pension funds and RRSPs are the main beneficiaries of the billions of dollars that the banks pay in dividends each year ($11.1 billion in 2011).

Successful exporters and international competitors

Canadian banks are successful exporters, with banks’ foreign operations contributing significantly to each bank’s bottom line. Approximately 30 per cent of bank income in 2011 was generated outside Canada, while 72 per cent of bank employees were located in Canada, and 87 per cent of taxes were paid in Canada.

Banks as employers

Canada’s banks and their subsidiaries contribute significantly to employment and job creation. In 2011, banks employed 274,120 Canadians. Industry employment has increased by 14.4 per cent over the past ten years while full-time industry employment has increased by 25.4 per cent over the same period.

Both the quality and the number of jobs are consistently high in the banking industry. Full-time jobs reached 79.6%, the highest it has been in the past 17 years.

And banks and their subsidiaries paid $20.8 billion in salaries and benefits in Canada in 2010.

A Diverse workforce

Canada’s banks have built workforces that reflect the diversity of the Canadian labour market. As of 2010, close to 70 per cent of the banks’ workforce is comprised of women, and 32 per cent of senior managers are women. Both of these figures are well over the government’s benchmarks. More than one in five bank employees are visible minorities, who are also increasingly represented in senior management.

In 2010, just over 2,669 aboriginal people were bank employees. Representation of people with disabilities in the large six banks increased to 3.5 per cent in 2010. Banks are currently engaged in a number of initiatives to increase representation and advancement in employment of aboriginal people and people with disabilities.

Banks in the community

Banks and their employees are among Canada's top corporate donors and have a long tradition of community participation. Canada’s charities and non-profit community groups receive multi-million dollar support from banks and every year thousands of bank employees at all levels donate their time and talent to charitable initiatives. These contributions help support a broad range of programs, particularly in the areas of education, the arts, youth, the environment, disaster relief and health care.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

^{1 Source: Survey of Suppliers of Business Financing, Statistics Canada, 2010. Domestic Banks
2 Total for seven banks: RBC, TD, CIBC, BNS, BMO, NBC and HSBC}

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Automated Banking Machine Market in Canada

Canadian Bankers Association — Wed, 23 May 2012 05:00:00 +0000

Fast facts

23 per cent of Canadians report that they conduct the majority of their financial transactions at ABMs
There are over 59,000 bank machines in Canada and more than 17,590 of these are bank-owned ABMs

The bottom line

While the use of online banking continues to grow, ABMs (automated banking machines) remain a popular method of getting cash, making deposits and paying bills for Canadians across the country.

The evolving banking relationship

The relationship Canadians have with their bank has changed in the last three decades. Thirty years ago, bank services were available only in branches that were typically open from 10 a.m. to 3 p.m. You would line up to deposit your paycheque and get cash for the week. If you didn’t make it to the bank on time, you could be stuck without cash. Now customers can bank anytime, anywhere through a variety of banking services. In fact, when asked to name the way they conduct the majority of their financial transactions, 23 per cent reported that they use ABMs and 45 per cent report that they bank primarily online.¹

Number of Bank Owned ABMs²

About the ABM market in Canada

There are over 59,000 bank machines in Canada and more than 17,590 of these are bank-owned ABMs. How did the market develop this way? In Canada, the Interac network enables customers of one financial institution to use ABMs owned by another operator. Originally, Interac was owned by the large Canadian banks but in 1996, the Competition Tribunal expanded membership eligibility in Interac to increase competition in the market for electronic payment services. This allowed a range of other ABM suppliers to enter the marketplace. Independent cash dispenser operators are now competing aggressively with Canada’s major financial institutions for ABM locations.

Types of Automated Banking Machines

The types of ABMs can be grouped into the following three categories:

Full-service ABMs located on the premises of a financial institution: This kind of ABM typically offers deposit, withdrawal, transfer, bill payment and account balance information services to customers from their financial institution and cash dispensing services to non-customers.

ABMs owned by a financial institution at an off-premises location: These machines do not generally accept deposits, but typically offer most other services to customers of that financial institution along with cash dispensing services to non-customers.

Independently operated cash dispensers: The vast majority of cash dispensers or “white-label machines” are run by private businesses that compete directly with banks and other financial institutions. These machines typically offer only cash dispensing services.

Types of fees

There are three types of fees associated with ABMs – regular transaction fees, network access fees and convenience fees.

Regular transaction fees: These are fees paid by customers for services provided by their financial institution and vary with the customer’s account package and the type of service provided. Some account packages have a set number of free transactions per month and then transaction fees are charged for additional transactions; many others offer unlimited transactions so customers do not pay any transaction fees.

Network access fees: These are fees paid by customers to their own bank to access their account when they use an ABM not owned by their financial institution. For example, if you bank at Bank “A” and withdraw money from an ABM owned by Bank “B”, you’ll need to pay a network access fee to your bank. Your bank has to pay a fee to process your transaction through the Interac network, and the network access fee helps cover those costs.

Convenience fees: These are fees that are always charged by independently operated cash machines and may be charged by financial institutions to non-customers that access their ABM. If a transaction is subject to a convenience fee, the ABM or cash dispenser will display a message telling the consumer the amount of the fee prior to the customer agreeing to proceed with the transaction. A portion of the revenue generated by convenience fees is usually paid to the owner of the premises where the machine is located.

More about convenience fees

Banks locate ABMs where they believe the machines will be convenient for their customers. At many off-premises locations, such as gas stations, airports and convenience stores, banks must pay the owner of the location a fee to place a machine on the property. Banks compete with independent cash dispenser operators for these locations and over time this competition has resulted in increased costs for off-premises machines. While banks are willing to absorb the additional cost to provide the service to their own customers, some banks may choose not to subsidize non-customers who use these locations and charge them a convenience fee.

How to avoid extra fees

It’s important to note that consumers can avoid convenience fees and network access fees altogether by using an ABM operated by their own financial institution.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

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Banks as Employers

Canadian Bankers Association — Tue, 22 May 2012 05:00:00 +0000

Fast facts

Canada’s banks employ 274,120 Canadians
Full-time bank employment has increased 25.4% over the past ten years
Canadian banks also employ more than 104,400 people in other countries

The bottom line

More than a quarter of a million Canadians are bank employees. Banks and their subsidiaries contribute significantly to job creation and to Canada’s labour market and many of the banks’ human resources policies and practices are at the leading edge.

Employment trends

Technology, competition and globalization continue to be major drivers of jobs in the banking industry. New technologies have resulted in the replacement of many routine transaction-based jobs with knowledge-intensive positions. These new jobs focus on building in-depth, value-added customer relationships. In keeping with this trend, banks are recruiting employees with higher education or skill levels. Existing employees are given opportunities to upgrade their skills through ongoing training and education. Recent growth areas have included corporate governance, investment advisory services and retail delivery.

Both the quality and the number of jobs are consistently high in the banking industry. Full-time jobs reached 79.6%, the highest it has been in the past 17 years.

Payroll taxes and employee benefits

Banks and their subsidiaries paid $20.8 billion in salaries and benefits in Canada in 2010.¹ And Canada’s six largest banks paid $959 million in payroll taxes for that year, including Employment Insurance, CPP and QPP premiums, and Employer Health Tax (where applicable). Banks also offer comprehensive benefit programs and pension plans to all employees who qualify, including those who work part-time. A wide range of support services is available to all employees, including employee assistance programs, career counselling, flexible work options, other assistance for balancing employees’ evolving work/life obligations and training programs.

Training and development

Canada’s banks are leaders in professional development. As part of their commitment to continuous learning, banks offer employees an array of educational programs through traditional and electronic channels. Courses vary from bank to bank, but may include sales and service, risk, ethics, corporate values, information technology and management and leadership skills.

Indirect contributions to employment

The banking industry is a major purchaser of goods and services from outside suppliers, spending $15.2 billion in 2011.

Diversity and inclusion

The banks proactively support and foster diversity and inclusion in their workforces. They actively promote youth employment by recruiting young Canadians and by participating in or sponsoring programs that encourage youth employment such as educational co-ops, internships, entrepreneurial and stay-in-school programs and offering scholarships. At the same time increasing numbers of older bank employees are choosing to continue working past the ages of 60 or 65.

Banks are also making special efforts to help new immigrants adjust to Canada and find jobs. Some banks have dedicated staff; others are working with outside organizations; all with a view to helping newcomers generally and, more specifically, helping them find jobs within the industry.

Employment equity

Banks were among the first organizations to grasp the long-term demographic and labour market significance of Canada’s Employment Equity Act in addition to its human rights aspects. They quickly became leaders in the ongoing effort to build representative workforces and were the first to articulate a business case for equity and diversity at work. The law requires federally regulated employers to collect annual data on four designated groups (see below) although the banks support broader concepts of diversity and inclusiveness.

Women

As of 2010, women constitute 65.2 per cent (133,093) of the workforce at Canada’s six largest banks (excluding subsidiaries), substantially more than any other federally regulated sector. Women occupied 32 per cent of senior management positions and 51 per cent of all middle management positions, exceeding the government’s benchmarks at both levels. In total, 52 per cent of all professional jobs in banks are held by women.

Visible minorities

Representation by people in visible minorities reached 26.4 per cent in 2010 accounting for 10.1 per cent of all senior management positions; 21.0 per cent of all middle management jobs, and 30.7 per cent of all professional positions. These numbers substantially exceed those in the external labour force (the government’s benchmark). They also exceed representation of visible minorities in the other federally regulated industries and in the federal public sector.

People with disabilities

Representation of people with disabilities in the large six banks increased to 3.5 per cent in 2010. The banks continue to work on initiatives to promote and sustain employment of people with disabilities in order to reach the benchmark of 4.9 per cent.

Aboriginal people

In 2010, the six banks employed 2,669 Aboriginal people, an increase of 4.3 per cent over 2009 although the representation level remained steady. This is another group with whom banks are making special efforts to increase representation and advancement.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

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What Canadians Think About Their Banking Industry

Canadian Bankers Association — Fri, 18 May 2012 05:00:00 +0000

Fast facts

83 per cent of Canadians have a favourable impression of banks in Canada.
84% of Canadians give banks a good to excellent performance rating when it comes to being stable and secure.
76 per cent think that banks in Canada are doing an important job in contributing to Canada’s economic recovery.

The bottom line

A large majority of Canadians have a favourable impression of their banks and agree that the country’s banks have performed better than other banks around the world because of sound lending practices, appropriate fees and by maintaining profitability. Most Canadians also believe that Canada’s banks are more stable than other banks around the world and that a strong banking sector is important to be able to compete on the international stage and support Canadian businesses.¹

Canadians have a favourable impression of banks

Banks are in the customer service business and have worked hard to make banking more convenient and accessible to customers by extending branch hours, enhancing online and telephone banking and listening to customers to help better meet their needs. This level of customer service has contributed to Canadians’ favourable impression of banks:

More than three-quarters of Canadians have a favourable impression of banks in Canada.²
An Ernst & Young survey complemented this assessment, finding that the majority of Canadian bank customers (66 per cent) are very satisfied with the level of personalized attention they receive from their bank.³

A strong, stable and secure banking system is important to Canadians

A steady and secure banking system is an important contributor to the Canadian economy and communities across the country and Canadians have confidence that their banks are performing well and remaining stable.

81 per cent of Canadians believe that Canada’s banks are more stable and secure compared to other banks around the world, with 48 per cent believing that they are much more stable.⁴
Canadians continue to strongly believe that Canada’s banks have performed better than most other banks around the world because they have better business practices including sound lending practices, appropriate fees and charges for their services and maintained profitability. Almost three-quarters (72 per cent) of Canadians agree with this view.⁵
76 per cent think that banks in Canada are doing an important job in contributing to Canada’s economic recovery.
When asked to rate the performance of banks in Canada on stability and security, 83% Canadians provided a good to excellent rating.
And a separate survey by Ernst & Young found that in Canada, trust in banks has remained largely unchanged in the past year despite the recent global economic turmoil.⁶

Nine-in-ten (87 per cent) of Canadians continue to believe that a strong banking sector that is able to compete on the international stage and support Canadian businesses is important. And this sentiment is shared by Canadians regardless of region.⁷

Good choice and competition

Canadians benefit from a high degree of competition and choice in the financial services marketplace. Seventy-seven domestic and foreign banks compete for customers’ business not only with each other, but also with a variety of other financial services providers, including 35 trust companies, 70 life insurance companies, about 200 finance companies, over 1,000 credit unions and caisses populaires and an array of federal and provincial financial agencies. When asked what they think about competition in banking, here is what those surveyed said:

Two-thirds of Canadians (67 per cent) believe that there is enough competition in the Canadian banking sector.
However, when they are told that there are about 70 banks in Canada as well as credit unions, 92 per cent agree that there is good choice for consumers when it comes to financial services.⁸

General inquiries:
1-800-263-0231 or inform@cba.ca

Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

1 Data from public opinion research conducted by The Strategic Counsel on behalf of the Canadian Bankers Association, May 2011 and Harris/Decima research findings for the CBA, Fall 2011
2 Harris/Decima research findings for the CBA, Fall 2011
3 Ernst & Young, Global Consumer Banking Survey, 2011
4 The Strategic Counsel on behalf of the Canadian Bankers Association, May 2011
5 ibid
6 Ernst & Young, Global Consumer Banking Survey, 2011
7 The Strategic Counsel on behalf of the Canadian Bankers Association, May 2011
8 Harris/Decima research findings for the CBA, Fall 2011

What Canadians Think About Their Banks (PDF)

Small and Medium-Sized Enterprises

Canadian Bankers Association — Fri, 18 May 2012 05:00:00 +0000

Fast facts

Banks in Canada have more than two million relationships with small- and medium-sized business owners operating in communities across the country, providing financing, deposit services and a range of innovative business solutions
78 per cent of SMEs have a positive relationship with their main financial institution
Of the 77 per cent of SME owners who have a credit relationship with a bank, 90 per cent report it to be positive
As of December 2010, Canada's domestic banks authorized almost $87.5 billion in credit to SMEs across the country

The bottom line

Banks play an essential role in the business operations of small- and medium-sized businesses, meeting their diverse financial needs to drive innovation, development and growth.

The majority of bank business customers are small businesses and banks work hard to meet the needs of this market – one that is increasingly competitive, diverse and technologically savvy. In fact, all banks have dedicated small business departments to help their SME customers.

More than just lending

Bankers in communities across the country have more than two million relationships with SME owners. SMEs are demanding value and quality service. To meet this demand, banks provide a variety of products and services in addition to lending such as deposit and transaction accounts, payments facilitation, day-to-day cash management services, foreign exchange, records management, international trade advice and business succession planning.

SMEs and bank relationships

The relationship is what matters and when we asked SME owners about their relationship with their bank, we found that:

78 per cent of SMEs owners say they have a positive relationship with their main financial institution.
Small business owners tend to be loyal: half of survey respondents have had a business relationship with their main financial institution for more than 10 years and, of those, 22 per cent have for more than 20 years.
SME owners identified the most important factors in their relations with their bank as: having a face-to face relationship (92 per cent), providing low priced products and services (91 per cent) and providing access to credit (85 per cent).
When asked about the biggest economic challenges facing their businesses, 15 per cent of SMEs said declining sales or revenues, 11 per cent cited attracting and maintaining customers and nine per cent said increased operating costs.

SMEs and credit

Canadian SMEs seeking credit enjoy a very competitive marketplace, with many different financing firms competing for their business. Throughout the recent economic downturn and into the recovery period banks have continued to lend to credit worthy businesses, providing a range of credit products including loans and lines of credit.

As of December 2010, Canada's domestic banks authorized almost $87.5 billion in credit to SMEs across the country.
Of the 77 per cent of SME owners who have a credit relationship with a bank, 90 per cent describe their credit relationship as “good” and almost six-in-ten (58 per cent) describe it as “very good”.
Banks continue to provide credit through the economic downturn: only seven per cent of SME owners cite access to credit as their biggest economic challenge.
43 per cent of SMEs have had a credit relationship with their main financial institution for more than a decade, with 21 per cent reporting a relationship of over 20 years.
70 per cent have credit relationships with two or more suppliers, which may include credit card suppliers, finance companies, leasing companies, banks, credit unions, angel investors or other credit suppliers:
- 20 per cent have only one credit relationship
- 17 per cent have two credit relationships
- 33 per cent have five credit relationships or more

Banks are also offering more flexible products and simplifying the credit application process, especially for smaller amounts of credit.

SME banking needs

SMEs turn to banks for a variety of business solutions beyond financing. From deposit services and cash management to foreign exchange and succession planning, banks work day in and day out to provide advice and develop innovative solutions for their SME clients.

When choosing a financial institution, 35 per cent based their choice on credit services and 52 per cent chose their institution for non-credit banking services.
In-person, branch service with a teller is the most frequent way SMEs do their day-to-day banking (79 per cent), followed by Internet banking at 66 per cent, an increase of 12 per cent from 2008.
53 per cent of SME owners who bank online have increased their use of Internet banking and 79 per cent of business owners say Internet banking has made their business more efficient.
91 per cent of SME owners think provision of low cost products and services is important, while 92 per cent think a face-to-face relationship is important to them.
81 per cent of SME owners believe it is important that their financial institutions are technologically advanced.

SME use of banking services

The top three services SMEs use with their main financial institution are:

Deposit services (82 per cent)
Transaction accounts (59 per cent)
Payments facilitation (51 per cent)

Strong ties to agriculture

Banks in Canada also have a longstanding business relationship with farmers and agricultural customers and these strong relationships have helped banks work with their customers through significant challenges. In the past decade alone, farmers have had to confront BSE, avian influenza, drought, floods, the H1N1 virus and country of origin labelling (COOL). Banks have been there for their clients, working with them on an individual, case-by-case basis to assess their unique needs and to develop solutions.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

All polling data from: SME Survey Results: Assessments of Relationship with Fis, Strategic Counsel, August 2009.

Printable version (PDF)

How Canadians Bank

Canadian Bankers Association — Fri, 18 May 2012 05:00:00 +0000

Fast facts

The Internet is now the main means of banking for 45 per cent of Canadians, and use of the Internet as the primary banking choice is increasing among all age groups.
Branch and ABM banking, while declining in popularity over time, remain important and valued methods of conducting a wide variety of banking transactions.
82 per cent of Canadians say technology has made banking more convenient, enabling them to bank whenever and wherever it suits them.

The bottom line

Banks offer Canadians a wide variety of ways to conduct their banking, providing customers with increased convenience, choice and flexibility.

Banks offer a wide range of financial services for consumers and a number of ways for people to access those services. In fact, of the 77 banks operating in Canada, more than 40 offer financial products and services - including bank accounts, credit cards, loans and investments - to Canadian consumers.

Gone are the days of banking only in a branch. Now a customer can bank anytime, anywhere either online, through an ABM or by phone, or even through a mobile banking application on a wireless device. Caught in the grocery store checkout line without enough cash? Customers can use debit cards and get cash back at the same time. Forgot to pay some bills before going on vacation? Customers can pay bills online, at an ABM or by phone or even set them up for direct payment.

Canadians are embracing these new choices. A 2010 CBA survey showed that Canadians use a variety of banking services to meet their needs and believe technologies available through their financial institution make their personal banking more convenient.

Online banking growing fast

Online banking continues to be the fastest growing and most popular method of conducting banking transactions:

A majority of Canadians (63 per cent) report using online banking in the last year.
Nearly half of Canadians (45 per cent) today use the Internet as their main means of banking, up from only eight per cent 10 years ago.
Ninety-one per cent of Canadians register high levels of satisfaction with their banks’ website. The majority of Canadians who visit their banks’ website say they check their account balances (92 per cent), pay bills (85 per cent) and transfer funds (76 per cent).

Branch banking: the personal touch

Despite the growth in electronic banking, branches remain a vital part of banking in Canada. To better meet customer needs, many branches are extending their hours and opening on Saturdays and Sundays. And some branches offer drive-through facilities.
23 per cent of Canadians surveyed identify branch banking as their main banking method, down from 29 per cent in 2000.
British Columbians are the highest users of in-branch banking with 32 per cent using it for their main banking needs. For Quebec residents, only 14 per cent rely mainly on branches.
Sixty-two per cent of young Canadians (18 to 34 years old) say online is their main way of banking compared to 25 per cent of those 55 or older. However, online banking use has continued to grow in this age group too and is up from 11 per cent in 2002.
As demand for branch banking has decreased, some branches have consolidated and others have become more specialized, where a variety of financial products, services and advice are also available.

Canadian ABM use still high

While more Canadians now identify online banking as their primary banking method (45 per cent) over banking at the ABM (23 per cent), ABMs remain very popular.

There are more than 59,000 ABMs in Canada, including more than 17,590 bank-owned ABMs.
In 2011, Canadians made over 605 million cash withdrawals, 211 million deposits and 48 million bill payments at bank-owned ABMs alone.

Mobile banking

As technology continues develop, banks in Canada are now offering mobile banking services that allow Canadians to carry out a variety of day-to-day banking transactions through their smart phones. Although this technology is fairly new, Canadians from coast to coast appear enthusiastic about the prospects for this technology.

Five per cent of Canadians reported using mobile banking during the last year.
Twenty-three per cent of Canadians expect to be conducting their banking using mobile devices in the near future, up from 14 per cent in 2008. This expectation increases significantly among current users of mobile devices:
64 per cent of iPhone users and 54 per cent of Blackberry™ users expect to be banking from their mobile device within the next two to three years.

Convenience and banking technology

82 per cent of Canadians say technology has made banking more convenient. 44 per cent say they value the ability to access their accounts anywhere; 15 per cent value the ability to bank when it is convenient for them; and 25 per cent say they do less running around which saves time and money.
For consumers, the ability to use debit cards (84 per cent), to pay bills electronically (82 per cent) and the availability of a national network of ABMs (74 per cent) improve banking somewhat or a great deal.

Safety and security

Eight-two per cent of Canadians are confident that banks continually update technologies so online and electronic transactions are safe. In fact, since 1996 banks have spent more than $69.6 billion to ensure the Canadian banking system is accessible, convenient and secure. But consumers recognize a shared responsibility for safety between banks and individuals.

The most common activities for ensuring safety and security of online transactions are PIN protection, use of secure websites and checking bank statements.
More than nine-in-ten (93 per cent) report the use of anti-virus software, while more than eight-in-ten (85 per cent) use firewalls. 78 per cent of Canadians use anti-spyware.

General inquiries:
1-800-263-0231 or inform@cba.ca

Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Fast Facts About the Canadian Banking System

Canadian Bankers Association — Thu, 17 May 2012 05:00:00 +0000


Number of banks in Canada: 77
Taxes paid in Canada in 2011 (by the six largest banks): $8.65 billion
Banks contribute approximately 3.4% to Canada’s GDP.
Taxes paid worldwide in 2011 (by Canada's six largest banks): $10 billion
Amount banks and their subsidiaries paid in salaries and benefits in Canada in 2010: $20.8 billion
Dividend income paid in 2011 by Canada’s banks to shareholders: $11.1 billion
Canada’s Bank Act is reviewed and updated every five years to ensure the regulatory structure is keeping pace with changes in the industry.
In 2011, banks employed 274,120 Canadians and industry employment has increased by 14.4% over the past ten years while full-time industry employment has increased by 25.4% over the same period.
Number of people employed by Canadian banks in other countries in 2011: 104,000
Percentage of senior managers with the six largest banks who are women (2010): 32%. Women constitute 65% of the workforce at Canada’s six largest banks (excluding subsidiaries).
Canadians are careful borrowers, and mortgage arrears in Canada remain very low (in fact, as of January 2012 only 0.38% of bank mortgages are in arrears).
Number of bank branches across Canada: 6,175, of which approximately 2,100 are rural and small town branches
Number of transactions logged at bank-owned ABMs in Canada (2011): 899 million
Number of online banking transactions completed with the six largest banks in Canada in 2011: 561 million
Banks provide financing to some 1.6 million small and medium-sized businesses.
Percentage of Canadians who believe that Canada’s banks are more stable and secure compared to other banks around the world: 81%
Percentage of Canadians that have a favourable impression of banks in Canada: 75% with one quarter of Canadians holding a very favourable impression.
Percentage of Canadians who give banks a good to excellent performance rating when it comes to being stable and secure: 84%
Percentage of Canadians who think that banks in Canada are doing an important job in contributing to Canada’s economic recovery: 76%
Amount six largest Canadian banks spent on technology in 2011: $7 billion
Amount six largest Canadian banks spent on technology from 1996 to 2011: $69.6 billion
#1 – Canada’s ranking by the World Economic Forum for the most sound banking system in the world, ( a ranking achieved four years in a row)

Printable version (PDF)

General inquiries:
1-800-263-0231 or inform@cba.ca

Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Competition in the Financial Services Sector

Canadian Bankers Association — Thu, 17 May 2012 05:00:00 +0000

Fast facts

Choice in providers: There are 77 domestic and foreign banks operating in Canada.
Choice in products: There are more than 100 bank account packages on the market.
Accessibility: 99.5% of Canadians have an account with a financial institution.¹

The bottom line

Canadian consumers enjoy a wide choice of banking services and providers, as well as affordable and accessible services.

Intense Competition

Canada’s competitive banking system provides good value, ready access and wide choice for Canadian consumers and small businesses. Whether it’s a bank account, a mortgage, insurance, financing for a business opportunity or help in managing their money, banks are actively competing with each other to provide financial products and services to Canadians -- meeting their needs every day and in every way.

Competition is intense: in fact, Canada has more large banks actively competing against each other for customers than practically any country in Europe, including the UK which has almost double the population of Canada.

Choice and competition benefits Canadians

Canadians benefit from the high degree of competition and choice in the financial services marketplace.

The first bank opening in Canada in a rented house in Montreal in 1817. Today there are 77 domestic and foreign banks currently operating in Canada and of those more than 40 offer financial products and services – including bank accounts, credit cards, loans and investments – to Canadian consumers.

And that competition isn’t just among traditional deposit-taking institutions. Legislative and regulatory changes beginning in 1980 made in easier for foreign banks to compete in Canada and the new rules allowed for different players to enter the marketplace. This has resulted in change and innovation and there are now:

banks owned by commercial companies such as a department store, a hardware store and a grocery store,
a bank owned by an insurance brokerage,
four Alberta-based banks – one owned by auto dealers and one owned by a motor club, and
virtual banks offering customers traditional banking services in addition to retirement savings products, mortgages and lines of credit.

Foreign banks in Canada

As a result of regulatory changes made to the Bank Act over the past thirty years, many more foreign-owned banks have entered the market in recent years to compete with the domestic banks as well as the other foreign banks that have operated in Canada for years. For example, Barclays Bank, headquartered in the U.K., established a bank in Canada in 1929.

Banks from all over the world, including China, the United States, India, Korea, the United Kingdom, Japan, the Netherlands and France have operations here. Currently there are 22 foreign bank subsidiaries operating in Canada and it’s just as easy to do business through one of these subsidiaries as it is at one of Canada’s domestic banks.

Consumers have even more choice

Banks compete not only with each other, but also with a variety of other financial services providers, including 35 trust companies, 70 life insurance companies, about 200 finance companies, over 1,000 credit unions and caisses populaires and an array of federal and provincial financial agencies.²

When asked what they think about competition in banking, here’s what Canadians said:

Two-thirds of Canadians (67 per cent) believe that there is enough choice in the Canadian banking sector.³
However, when they are told that there are about 70 banks in Canada as well as credit unions, 92 per cent agree that there is good choice for consumers when it comes to financial services.

Accessible and affordable

The high degree of competition is good news for Canadians. In fact:

Canada has one of the most accessible banking systems in the world – 99.5 per cent of Canadians have an account with a financial institution.
Whether it’s a savings, chequing, low-fee, student, senior, or a plain vanilla account, there is a lot of choice for Canadians with over 100 account packages to choose from in the marketplace. And Canadians have access to one of the most efficient, secure and low-cost banking systems in the world with many affordable options.
Thirty per cent of Canadians pay no service fees at all for their banking.
Banks offer low-cost accounts, priced at $4 or less per month.
Youth, students and seniors can access discounted or free accounts
Not-for-profit organizations can also access community service accounts.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Household Borrowing in Canada

Canadian Bankers Association — Thu, 17 May 2012 05:00:00 +0000

Fast facts

68 per cent of all household debt in Canada is made up of residential mortgage debt which helps increase net worth, while 20 per cent comes from lines of credit and only five per cent is credit card debt¹
Canadians with mortgages have significant equity in their home, averaging about 66 per cent of the home’s value²
64 per cent of Canadians pay off their credit card balance in full each month, avoiding credit card debt and interest payments altogether³
National mortgage-in-arrears numbers remain very low, at less than half of one per cent⁴

The bottom line

Banks are closely monitoring household debt levels and the economic recovery in Canada to ensure that Canadian households can manage their debts well. Banks in Canada remain prudent lenders that manage risk carefully, only lending to clients who demonstrate the ability to repay their loans. At the same time the vast majority of Canadians are responsible borrowers who use credit wisely to strengthen their financial futures.

There has been much public discussion recently about household borrowing and debt levels in Canada, and broad agreement that this is a matter that merits close attention. To help contribute to the discussion, the Canadian Bankers Association is providing the following information and facts.

Canadians make wise borrowing decisions

Overall the vast majority of Canadians are responsible borrowers who use credit wisely to strengthen their financial futures. And it is important to put consumer borrowing into perspective: the majority of Canadian household debt, 68 per cent, is made up of mortgage debt⁵ – borrowed money used to purchase a home, a high quality asset which can increase an individual’s net worth over time.

The statistics show that Canadians are managing their mortgages responsibly. A 2011 study by the Canadian Association of Accredited Mortgage Professionals (CAAMP) found that 22 per cent of mortgage holders have increased their mortgage payments and 18 per cent have made an additional lump sum payment in the last year.⁶ Moreover, a 2011 study by the Canada Mortgage and Housing Corporation (CMHC) found that:

75 per cent of recent home buyers feel it is very important to pay off their mortgage as soon as possible and 39 per cent of recent buyers have their mortgage payment set higher than the minimum required.⁷

Canadians also have significant equity in their homes. Among homeowners with mortgages, the average amount of home equity in Canada stands at 66 per cent of total home value.⁸

Lending and borrowing decisions take place in the context of a strong regulatory system in Canada. The federal government has made regulatory changes to help households manage debt, including such measures as reducing the maximum mortgage amortizations and introducing improved qualifying criteria.

Responsible credit card use

Credit cards are a convenient payment tool, used responsibly by the majority of Canadians. Two-thirds of Canadians pay their credit card balance in full each month, avoiding credit card debt and interest payments altogether.⁹ And credit card delinquency rates remain low, at only 1.06 per cent of total outstanding balances as of October 2011.¹⁰ According to the Bank of Canada, credit card debt only makes up five per cent of total household debt in Canada and there has been virtually no growth in unsecured debt in the past two years. Credit card default rates are half of U.S. levels.

Banks are prudent mortgage lenders

Banks take their role as mortgage lenders very seriously, adhering to prudent standards and ensuring consumers only take on manageable levels of debt. This is clearly evident when looking at national mortgages-in-arrears numbers for Canada’s nine largest banks, which show that less than half of one per cent of homeowners have gone three consecutive months or longer without making a payment.¹¹

Mortgage debt has been growing and this growth has been driven by the housing market, not changes in bank lending practices. House prices have more than doubled in the past decade, requiring home buyers to borrow more to finance their homes.

As the global economy stabilizes, today’s historically low interest rates will inevitable rise. Banks take this into account and ensure potential borrowers are able to make future payments under higher interest rate conditions. For example, for variable rate mortgages, banks normally assess borrowers using a five-year term interest rate so that the borrower could continue to make mortgage payments if interest rates go up.

Banks provide advice on debt management

Banks are closely monitoring their customers’ borrowing to ensure that debt levels are manageable. Every family has unique borrowing needs and the amount of debt they feel comfortable carrying can also vary. Banks can provide the financial advice that is right for each individual customer.

Banks do not want to see their customers in financial difficulty. Canadians who think their debt is becoming unmanageable are encouraged to speak with their bank as early as possible so they can get the help they need. Banks are often able to help their clients work through financial problems by offering advice, debt counselling and flexible loan arrangements.

Helping Canadians Save

Banks also offer Canadians many different tools to help them save and invest their money for short-term or long-term needs. From tax-free savings vehicles to GICs to high-interest savings accounts, banks have their own unique programs to help their customers save and manage their money. Many banks also offer services such as savings programs that transfer money from chequing to savings accounts automatically, savings calculators and help and advice in achieving specific savings goals.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

1 Bank of Canada, Financial System Review, 2010
2 Canadian Association of Accredited Mortgage Professionals (CAAMP), Stability in the Canadian Mortgage Market, 2011
3 The Strategic Counsel for the Canadian Bankers Association (CBA), Annual Tracking Survey: Assessment of Canada’s Banks, 2011
4 CBA statistics, Residential Mortgages in Arrears
5 Bank of Canada, Financial System Review, 2010
6 CAAMP, Stability in the Canadian Mortgage Market, 2011
7 CMHC, 2011 Mortgage Consumer Survey
8 CAAMP, Stability in the Canadian Mortgage Market, 2011
9 The Strategic Counsel for the Canadian Bankers Association (CBA), Annual Tracking Survey: Assessment of Canada’s Banks, 2010
10 CBA, Credit card Delinquency and Loss Statistics

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Banking Service Fees

Canadian Bankers Association — Thu, 17 May 2012 05:00:00 +0000

Fast facts

There are more than 100 different account packages on the market to choose from
60 per cent of Canadians spend $15 or less per month on service fees; 31 per cent pay no service fees at all
Basic accounts are available at major banks for $4 or less

The bottom line

In our competitive marketplace, consumers have a great deal of control over the service fees they pay.

Service fees: How much do consumers actually pay?

60 per cent of Canadians say they pay $15 or less for monthly service fees, and 31 per cent report paying nothing at all.¹
31 per cent of consumers report paying $0 fees, because they take advantage of no-fee service packages for seniors, students or youth, maintain a minimum monthly account balance, or choose a no-fee electronic banking package.

Are consumers getting good value?

Bank service fees are a comparatively small household expense. Statistics Canada has found that households spend an average of about $16.2 per month² on bank service fees, compared to $22.11 spent on lotteries, $56.88 on cable and satellite TV, $41.09 on prescription drugs, and $214.06 on household utilities.
Banks offer low-fee account packages for just pennies a day. For example, the monthly fee for low-fee accounts ranges from $2.95 to $4 for eight to 15 transactions a month, unlimited deposits, a debit card and free monthly statements or passbook updates – all for less than the cost of a daily newspaper delivered to your door.
Personal service charges account for about 5.6 per cent³ of total bank revenues.

Why do I have to pay service fees to access my own money?

Service fees help pay for the convenient and reliable banking services that Canadians use, including:
- A national network of 6,175 branches
- 17,590 bank-owned ABMs
- The Interac Direct Payment terminals at more than 450,000 retailers in Canada
- Telephone and internet banking
From 1996 to 2011, the six largest banks have invested $69.6 billion in technology to ensure a convenient and secure banking system.

Shop around for the best value for your needs

Of the 77 banks operating in Canada, more than 40 offer financial products and services - including bank accounts, credit cards, loans and investments - to Canadian consumers.
There is a lot of choice and competition, and consumers should shop around to find the products and services that best meet their needs.
The Financial Consumer Agency of Canada (FCAC) offers an online tool to help make it easy. The FCAC’s Banking Package Selector tool compares over 100 different account packages at 16 financial institutions.⁴

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Canada’s Efficient and Secure Payments System

Canadian Bankers Association — Thu, 26 Apr 2012 13:30:05 +0000

Fast facts

94% of Canadians have a debit card to use at retailers or at ABMs to make transactions
New forms of electronic debit payment are becoming more widespread
When it comes to credit cards, consumers in Canada have tremendous choice with hundreds of institutions – including banks, credit unions, and retailers – offering credit cards, with a wide range of features
Cash is often assumed to be a “free” form of payment for merchants – it’s not. In fact, it can be very expensive if you include effort spent on cash handling

The bottom line

Canada benefits from a secure, efficient and innovative payments system built on the foundation of strong financial institutions. Canadians value and trust the payments system which enables them to make the transactions that are part of their daily life. And those transactions are driving the country’s economy.

The well-functioning payments system in Canada

When making a purchase, consumers can choose to use cash, cheques, debit and credit cards, as well as other electronic payments services like PayPal, e-mail money transfers, bank transfers and soon, mobile payments. Many of these options are available for both in-store or online purchases.

Canadians largely take for granted the choice and the overall reliability of their payments system. They assume, with good reason, that the payments they initiate will be processed efficiently, accurately and securely. That confidence is a key part of a healthy and productive Canadian economy.

Innovation in payments technology has increased the country’s productivity and expanded the size of the Canadian economy. A study by Global Insight¹ found that electronic payments have contributed $107 billion to the Canadian economic growth in the last two decades.

The expanded range of payment options offers consumers a great deal of choice in how they pay:

96% of Canadians aged 18 and over have a savings, chequing or other account with a financial institution that they can use to write cheques, pay bills or transfer money.²
94% of Canadians have a debit card to use at retailers or at ABMs to make transactions.³
88% of Canadian households have at least one major credit card.⁴
45% of Canadians use online bill payment as their primary tool for paying bills.⁵
The use of new payment methods is growing substantially. Online payment provider PayPal indicates that it now has more than four million users in Canada.⁶

Safe, secure and convenient payments by debit card

With a variety of payment methods to choose from, many Canadians use their debit card because it allows them to quickly and conveniently make payments from their bank account, without the need to carry large amounts of cash. In fact in 2000, Interac Direct Payment surpassed cash as Canadians' preferred method of payment,⁷ and debit card payments have continued to grow.

Canadians are among the biggest users of debit cards in the world, with only residents of Sweden and the United States doing more transactions per person. Debit cards are accepted by more than 450,000 retailers in Canada, and nearly four billion transactions were done using the Interac^® network in 2010.⁸

New forms of electronic debit payment are becoming more widespread as Canadians can use their debit card through Interac to make purchases at online retailers and pay money owed to friends and family through e-mail money transfers. And with Interac Flash, debit card users can now wave their card in front of a reader to make small value transactions. Regardless of the type of transaction, debit card users are always protected so, if they become the victim of fraud, they will be reimbursed by their financial institution.

The debit card landscape is changing and more competition is coming to debit card payments. Both Visa Canada and MasterCard Canada are starting to make debit services available to Canadians through their secure networks.

The credit card system: benefitting both consumers and retailers

Credit cards are an essential part of our payments system. Every day, Canadians rely on their credit cards to buy household supplies, sign up their kids for swimming and soccer, make a hotel reservation and pay for parking. From gifts to necessities to travel, Canadians use their cards and derive a great deal of benefit from the system.

Canada benefits from a well-functioning credit card system that offers many benefits to both consumer and to retailers who accept credit cards as payment.

Benefits to consumers

When it comes to credit cards, consumers in Canada have tremendous choice with hundreds of institutions – including banks, credit unions, and retailers – offering credit cards, with a wide range of features that can fit every profile and pocketbook.

Benefits of credit cards for consumers:

Access to unsecured credit (no collateral required against amounts charged).
Interest-free credit from time of purchase to the end of the billing period.
Instant certainty of payment for merchants means instant receipt of goods and services for consumers.
Other rewards and benefits, such as air travel points, car insurance, damage and loss insurance, extended warranty programs and affinity programs.
Ability to make purchases over the Internet.
Fraud protection with zero liability to the consumer in cases of fraud.
Convenience and safety associated with not having to carry large amounts of cash.
Protection from losses for consumers when they pay for something in advance, like travel packages, concert tickets or goods on order that do not arrive.
Detailed expenditure tracking.
24/7 access

Benefits to merchants

While some Canadians understand that merchants pay a fee to accept credit cards, they may not understand all of the benefits that retailers derive from accepting payment cards. For merchants, payment cards speed up the checkout line, reduce cash handling time and costs, increase sales and more.

Merchants are not required to accept credit cards but do so in increasing numbers to attract customers by making this convenient payment method available to them. Merchants that do accept credit cards receive many benefits, including:

Fast, guaranteed payment, which can reduce line-ups at checkout. If every credit card transaction took an extra 30 seconds, it would use up an additional 27 million hours of staff time each year.
The ability of accepting credit without worrying about the creditworthiness of customers, insufficient funds or outstanding receivables.
Increased sales by offering customers a variety of payment options.
Expanded markets; ability to sell to customers throughout Canada and around the world in the currency used by the retailer.
The ability to enter into co-branding relationships: merchants can have their own branded credit card to build their brand recognition and encourage cardholders to shop at their establishment.
Card payments mean less cash on hand. Cash is often assumed to be a “free” form of payment for merchants – it’s not. In fact, it can be very expensive if you include effort spent on cash handling, including counting bill and coins at the end of the day, armoured transport, a higher likelihood of theft and pilfering and potential mistakes by cashiers.

Canada has a very sophisticated credit card market with a lot of choice and competition for consumers. The system works well for both individuals and retailers, and is a critical element in Canada's efficient payments system.

Banks and Consumers

Canadian Bankers Association — Tue, 13 Mar 2012 05:00:00 +0000

Fast facts

Over 99 per cent of Canadians have a bank account
64 per cent of Canadians pay their credit card balance in full each month
Canadians are careful borrowers. Only 0.38 per cent of mortgages are in arrears

The bottom line

For consumers and businesses, Canada’s competitive banking system provides good value, ready access and wide choice.

Canada’s competitive banking system provides good value, ready access and wide choice for consumers and small business. In fact, of the 77 banks operating in Canada, more than 40 offer financial products and services to Canadian consumers, including bank accounts, credit cards, loans and investments.

Affordable banking services

Over 99 per cent of Canadians have a bank account. Whether it’s a savings, chequing, low-fee, student, senior, full bells and whistles or a plain vanilla account, there is a lot of choice for Canadians and over 100 account packages to choose from in the marketplace.

Banks have worked hard to ensure that there are low-cost accounts, priced at $4 or less per month, for those who need or want them.
Sixty per cent of Canadians spend $15 or less per month on bank service fees and 31 per cent pay no service fees at all.¹
Youth, students and seniors can access discounted or free accounts.
Payday loans aren’t the answer for small, short-term borrowing: overdraft protection, lines of credit and low-rate credit cards are affordable alternatives. And banks are strong supporters of credit counselling if needed.

Lending to business

Banks play an essential role in the business operations of small- and medium-sized enterprises (SMEs), meeting their diverse financial needs to drive innovation, development and growth.

78% of SMEs report a positive relationship with their main financial institution.²
Small business owners also tend to be loyal: half of SMEs have had a business relationship with their main financial institution for more than 10 years and, of those, 22 per cent have for more than 20 years.³

Mortgages

Canadians continue to have access to a banking system that is accessible, affordable and competitive. They remain confident in the safety of their deposits, and continue to make use of affordably-priced credit, including mortgages.

Canadians are careful borrowers. Only 0.38% of mortgages are in arrears.⁴
Banks have developed a model plain language mortgage document to help make the contract terms easier to understand for customers.

Credit cards

A credit card is a convenient and flexible payment tool that can be used in 170 countries and at 30 million locations around the world. Credit cards are:

Accessible – as unsecured credit, you don’t need to have a collateral to back up the loan. And the loan is interest free from the time of purchase until the end of the billing period.
Convenient – credit cards can be used 24 hours a day, seven days a week, every day of the year and allow you to instantly pay for what you need.
Safe – credit cards offer fraud protection with zero liability to the consumer.

A majority of Canadians pay their credit card balance off every month:

64% of Canadians pay their credit card balance in full each month.⁵ And 93 per cent who do not pay off their card balances each month report that they pay more than the minimum amount.⁶
The majority of Canadians use credit cards as a payment tool rather than a loan product. For them, reward programs, insurance, retail discounts and affinity programs are very attractive.
There are more than 70 low interest rate cards to choose from.⁷

Technology

Canadian banks continue to invest in new technology to allow clients to bank whenever and however it suits them, and customers can:

Get money at more than 59,000 ABMs
Make purchases at 450,000 retailers in Canada.

From 1996 to 2009, the six largest banks have invested $55.8 billion in technology to ensure an accessible, secure and convenient banking system.

Convenience of banking

Canadians are able to conduct transactions in a variety of ways including: online, mobile, ABM and telephone banking as well as traditional in-branch services.

Canadians are able to access banking services 24/7.
45 per cent of Canadians say they bank primarily online.⁸
Five per cent of Canadians say they have used mobile banking in the last year and 23 per cent say they plan to use it in the next two to three years.⁹

Consumer education and financial literacy

Financial literacy is an essential life skill and Canadians agree that an understanding of money and financial matters is an important component of a teen’s education.

Over 600 bankers across Canada volunteer their time to deliver the CBA’s Your Money financial literacy program for youth (www.yourmoney.cba.ca).

Canada’s stable & secure banking system

Canadians overwhelmingly agree that Canada’s banks are more stable and secure compared to other banks around the world thanks to better business practices.

78 per cent of Canadians believe Canada’s banks have played a substantial role in ensuring that the country’s banking system is among the most effective and stable in the world.¹⁰
82 per cent believe that because Canada’s banks have been more responsible in their lending and credit services, the Canadian system continues to work effectively even during the recent financial turmoil.¹¹
For the third year in a row the World Economic Forum has ranked Canada’s banks as the most sound in the world.
The banking sector helps Canada grow, generating $55 billion, or 3.4 per cent, of Canada’s GDP.

General inquiries:
1-800-263-0231 or inform@cba.ca

Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Credit Cards: Statistics and Facts

Canadian Bankers Association — Mon, 05 Mar 2012 05:00:00 +0000

Fast facts

A credit card is a convenient and flexible payment tool for both consumers and retailers.
Credit cards provide interest-free credit from the time of purchase to the end of the billing period.
Since more than 64% of Canadians pay their credit card balance in full each month,¹ the interest rate for two-thirds of credit card users is zero.
For those who choose to carry a balance:
- Credit cards offer access to unsecured credit (no collateral required).
- There are more than 70 low interest rate cards on the market and over 40 of those cards have an interest rate of under 12%.²

The bottom line

Canadian consumers have tremendous choice in selecting a credit card.
The majority of Canadians use their credit card as a method of payment rather than a means of borrowing.
Credit cards offer valuable benefits for both consumers and retailers.

Credit card benefits

A credit card is a convenient and flexible payment tool accepted in 170 countries and at 30 million locations worldwide.

For consumers:

Access to unsecured credit (no collateral required against amounts charged).
Interest-free payment from time of purchase to the end of the billing period.
Instant payment of purchases, allowing for instant receipt of goods and services.
24/7 access.
Fraud protection with zero liability to the consumer in cases of fraud.
Other rewards and benefits, such as air travel points, car insurance, damage and loss insurance and extended warranty programs.

For retailers:

Retailers are not required to accept credit cards, but do so in increasing numbers because that is the method of payment many customers prefer. Retailers that do accept credit cards receive many benefits, including:

Fast, guaranteed payment, which can reduce line-ups at checkout. If every credit card transaction took an extra 30 seconds, it would use up an additional 27 million hours of staff time each year.
The ability of accepting credit without worrying about the creditworthiness of customers, insufficient funds or outstanding receivables.
Reduced cash on hand and cash handling time and costs, including counting cash at the end of the day, armoured transport, higher likelihood of theft and pilfering and potential mistakes by cashiers.
Increased sales; ability to offer customers a variety of payment options.
Expanded markets; ability to sell to customers throughout Canada and around the world in the currency used by the retailer.

Competition and choice

When making a purchase, consumers can choose to use cash, cheques, debit cards, credit cards as well as electronic payments services like PayPal and Interac Online.

When it comes to choosing a credit card, banks offer consumers a wide variety of products. Customers may choose among standard cards without an annual fee, premium cards that offer rewards and features, and low-rate cards if the interest rate is a key consideration influencing the card choice.

Hundreds of institutions in Canada, including banks, credit unions, retailers, caisses populaires, trust companies and finance companies offer credit card products.
There are more than 70 low-rate cards on the market and over 40 of those cards have an interest rate of under 12%.³
74.5 million Visa and MasterCard cards are in circulation in Canada.⁴

Consumers are encouraged to learn more about the choices available and to select the credit card that best suits their needs. Just like any item or service that a customer buys, the customer has the control to decide on their credit product.

For longer-term borrowing requirements, a term loan or line of credit may be a better choice.

Consumers should visit the Financial Consumer Agency of Canada (FCAC) website www.fcac.gc.ca for an extensive list of cards and features, and use the credit card comparison tool to help select the card that best suits their needs.

Strong regulations⁵

Consumers with credit cards from banks are protected by Bank Act regulations that require:

Disclosure of the interest rate at the time of solicitation or application, and on every one of your monthly statements.
Statements to include itemized transactions, the amount you must pay on or before the due date in order to have the benefit of a grace period.
Disclosure of the previous month’s payments and the current month’s purchases, credit advances, as well as interest and non-interest charges.
Plain language information for customers.
Rules on advertising.
Limits on consumer liability in the event of fraud.

Credit card pricing

There are a number of factors that influence card fees and interest rates.

An interest-free period from purchase to payment, depending on the card, as long as the balance is paid in full when owing.
Access to unsecured credit where no collateral is needed, which makes it a higher risk for the credit card issuer.
Significant costs to operating the credit card system including processing a large volume of transactions, technology that is constantly updated to support transactions, preparing and mailing statements, collecting payments and the costs for providing value-added rewards programs.
Costs to fight fraud and customer reimbursement. When fraud occurs, customers have zero liability. In 2010, financial institutions reimbursed more than $365 million to their Canadian credit card customers, representing the losses these customers suffered as a result of criminal activities.
The Bank of Canada rate represents less than one per cent of bank funding and does not influence the pricing of consumer lending or credit cards interest rates.

Most Canadians pay cards off every month

A 2011 survey by the The Strategic Counsel found that 64% of Canadians pay their balance off in full every month, while only half of American households do.
And 93 per cent who do not pay off their card balances each month report that they pay more than the minimum amount.⁶
Income is not a factor in who pays off their credit cards. Statistics Canada found that the percentage of low, middle and high income families paying off their credit cards every month is roughly the same.
The credit card delinquency rate in Canada is half of what it is in the U.S.⁷
Canadians carry an average of two credit cards per household, while U.S. consumers average six.⁸
Credit cards account for just 5% of total household debt.⁹
Banks work with clients who are concerned about their debt, helping them get control of their finances or choose more suitable credit products. Banks also support non-profit credit counseling services.

Why interest rate caps are not in the best interest of consumers

There have been proposals in the past and more recently to cap credit card interest rates at 5 per cent above the prime rate. This would not reduce the cost of credit as intended, but instead it would:

make it harder for some Canadians to get a credit card,
limit choice and innovation in credit products.

Currently, there are more than 70 low-rate cards in the marketplace to choose from, so there is a lot of choice for consumers who want to reduce their interest payments. An overwhelming number of Canadians – 92% – believe that consumers have a responsibility to shop around for the credit card that best meets their needs.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Code of Conduct for the Credit and Debit Card Industry in Canada (PDF)

Financial Literacy: A Family Affair

Canadian Bankers Association — Thu, 21 Jul 2011 05:00:00 +0000

Fast facts

Parents and teens are talking about money: 81 per cent of teens and 92 per cent of parents report discussing money and financial matters at home together.
68 per cent of teens and 64 per cent of parents describe teenagers’ basic financial understanding as good or very good.
65 per cent of teens and 73 per cent of parents cite parents as the primary source of information about managing money and finances.

The bottom line

Financial literacy is an essential life skill and both parents and teens understand this. While both parents and teens agree that teens have a good basic understanding of money management, the same isn’t true when it comes to more sophisticated concepts like investing and borrowing.

In December 2009 the Canadian Bankers Association commissioned The Strategic Counsel to conduct two national surveys of parents and teens to compare parents’ assessments of their teenaged children’s financial literacy with teens’ own assessments. Here are the results of that research.

Parents and teens are talking.

Both parents and teenagers recognize the importance of financial literacy and agree that parents play a big role in the financial education of their children.

86 per cent of teens and 95 per cent of parents agree that an understanding of money and financial matters is an important component of a teen’s education.
81 per cent of teens and 92 per cent of parents report discussing money and financial matters at home together.
65 per cent of teens and 73 per cent of parents cite parents as the primary source of information about managing money and finances.
Other sources of information include:
- self-learning, identified by 18 per cent of teens and 13 per cent of parents and,
- school courses, cited by 12 per cent of teens and seven per cent of parents.

Teens understand the basics

Both teens and parents report that teens have a good understanding of money and are well-equipped to manage their finances. When questioned about specific financial skill sets, the survey found the following:

84 per cent of teens and 68 per cent of parents reported teens have a good understanding of the value of saving money.
73 per cent of teens and 59 per cent of parents reported teens are good with their own personal money management.
66 per cent of teens and 52 per cent of parents reported teens are doing a good job of saving for their future.

As teens age, their confidence in their financial ability increases. When asked about budgeting, for example, 67 per cent of all teens described their skills as good. When broken down by age, the results show an increase in confidence over the years:

Among teens aged 14 and 15, 58 per cent described their skills as good.
Among teens aged 16 and 17 this number jumps to 66 percent.
Among teens aged 18 and 19 it further increases to 73 per cent.

Room for improvement

While both groups agree that teens have relatively strong basic money management skills, the survey results show that the same may not be true with more sophisticated financial matters:

56 per cent of teens and 64 per cent of parents reported teens have a fair or poor understanding of credit ratings and personal credit history.
59 per cent of teens and 71 per cent of parents reported teens have a fair or poor understanding of investing.
63 per cent of teens and 71 per cent of parents reported teens have a fair or poor understanding of borrowing and accessing credit.
50 per cent of teens and 57 per cent of parents reported teens have fair or poor understanding of the difference between good and bad debt.

How teens bank

Banks in Canada provide a wide range of educational materials for their young customers, including information about how to read a bank statement, the importance of saving and budgeting, and how interest works. Many banks also offer no-fee youth and student accounts, so young people are able to learn about money management and banking through hands-on experience. The survey of teens found that:

94 per cent have a bank account
78 per cent have a debit card
74 per cent have savings
26 per cent have a credit card of their own and
31 per cent have investments

Interestingly, 64 per cent teens reported they had personal savings set aside for their education, but only 56 per cent of parents reported their teens had done so. These results suggest that teenagers may exert more independence in their personal financial management than parents realize.

When asked about the source of their income, the survey found that 50 per cent of teens have a part-time job with four per cent reporting a full-time job. Other sources of income include:

A regular allowance (29 per cent)
Money from parents by request (47 per cent)
Money from investments or trusts (12 per cent)
Gifts or presents (56 per cent)
Babysitting, odd jobs, seasonal work, paper route or a school loan (15 per cent)

Teens give high marks to parents

Interestingly, not only do teens acknowledge the importance of their parents’ role in their financial education, they also give high marks to their parents for their money management skills.

84 per cent of parents rate themselves as good on money management and teens agree, with 84 per cent describing their parents’ money management skills as good.
Teens are more inclined to give strongly positive ratings to their parents for money management skills:
- 41 per cent of teens describe their parents’ skills as excellent compared to only 26 per cent of parents themselves.

Banks and financial literacy programs

Many Canadians look to banks as a trusted source of financial information and banks are working in their communities to provide consumers with the information they need to make sound financial decisions.

In addition to the initiatives sponsored or led by the individual banks to promote financial literacy, the banks also jointly support a non-commercial in-class seminar called YourMoney, which delivers basic money management information to senior high-school students in communities across Canada. Delivered by volunteer bankers, the seminar has reached over 200,000 students to date. More information can be found at www.yourmoney.cba.ca.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

News Release: Parents and teens agree - financial literacy a family affair

Bank Lending to Businesses

Canadian Bankers Association — Thu, 07 Jul 2011 05:00:00 +0000

Fast facts

Banks represent a little more than half of the business lending market and roughly one-quarter of the overall business financing market in Canada.
Banks are prudent lenders and continually work to make credit available to credit-worthy businesses in Canada. This prudent approach is a key reason why banks in Canada avoided the financial difficulties that recently plagued banks in other countries.
Throughout the current business recovery phase, banks will continue to be there to support their business clients, just as they were during the financial crisis.

The bottom line

Canada’s banks remain open for business and committed to providing financing to Canadian businesses.

Banks are a key source of credit for Canadian businesses

Banks represent a little more than half (58 per cent) of all lending supplied to businesses through business loans, short-term promissory notes known as bankers’ acceptances, non-residential mortgages and other lending products. Considering the financing market more broadly, including capital markets, banks represent roughly one-quarter of the total business financing marketplace.¹

As we move through the business recovery phase and towards a more sustainable growth path, banks will continue to be there to support the business clients, just as they were during the financial crisis.

Demand for business credit rebounding

During the recent economic downturn, many businesses reduced their borrowing because of the economic and market uncertainty. And, while banks continued to provide businesses with access to credit, businesses did not access that credit as much as they had in the past.

Business financing is now growing in response to increasingly favourable economic growth and confidence. These conditions are becoming broad-based throughout the Canadian economy and are bolstered by:

the solid financial positions of Canadian firms. The Bank of Canada recently noted that businesses have relatively high amounts of cash and low levels of leverage on their balance sheets.
the improved global economic outlook and low government bond yields that have underpinned the strong investor demand for corporate bonds and equities.

How lending decisions are made

Bankers look at the total business package when making financing decisions and the ability to repay a loan is determined by the business plan, cash flow projections, asset base, sales and marketplace analysis and business viability.

Banks make all lending decisions on a case-by-case basis. The terms of the loan are based on the financial situation of the individual business within the context of financial market conditions more broadly. For example, if the recent global economic difficulties had a negative impact on a business' financial situation, then the risk to the bank of lending to that business could increase. Because of that, the bank may require more security before providing the loan or the loan may be more expensive. But if the business is creditworthy and the bank thinks it has the ability to repay the loan, then the credit would be granted.

Banks remain prudent lenders

While banks understand the importance of providing credit businesses, they also have a responsibility to protect their depositors’ money.

Banks continue to make lending decisions on a case-by-case basis, extending credit to those for whom it would be beneficial and who have the capacity to repay the loans. This prudent approach is a key reason why banks in Canada have largely avoided the financial difficulties that have plagued banks in other countries.

Maintaining these sound, fundamental principles of prudent lending is important to Canada’s banking system and also in the best interest of all Canadians.

Canadian businesses benefit from Canada’s strong banking system

Emerging from the economic turbulence of the past few years, Canada’s banks have remained strong, contributing substantially to the economic recovery without requiring the taxpayer-funded bailouts that have occurred in many other countries around the world.

For the third consecutive year the World Economic Forum has ranked Canada’s banking system as the world’s soundest. This is good news that benefits Canada and Canadians. The banking industry annually contributes tens of billions of dollars to Canada’s GDP, directly employs more than a quarter of a million Canadians and provides financing for businesses across the country, including close to $87.5 billion in credit to small businesses alone last year.²

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Bank Revenues and Profits

Canadian Bankers Association — Thu, 09 Jun 2011 05:00:00 +0000

Fast facts

The majority of Canadians are shareholders in Canada’s banks
81 per cent of Canadians believe that Canada’s banks are more stable and secure compared to other banks around the world
75 per cent of Canadians have favourable views of Canadian banks

The bottom line

When banks are profitable, they are stable. When banks succeed, the economy and communities prosper.

A profitable banking industry works for Canada and Canadians. Banks provide jobs directly and indirectly, create tax revenues and donate to charities in Canada and worldwide. Profits also expand the capital base of banks, which in turn maintains the stability of the system, ensuring the safety and security of Canadians’ deposits.

What is the difference between revenues and profits?

Revenues are the income generated from a business’ products and services before taxes and general expenses. Net income is left after all expenses and taxes are paid. The six largest banks’ net income in 2010 was $20.4 billion.

Where do bank revenues come from?

Being involved in a variety of businesses, banks have diverse revenue streams. This variety helps yield positive financial results, which makes for a secure and stable banking sector that contributes significantly to Canada’s economy.

Banks categorize their revenue into two broad areas based on how it is generated – interest income and non-interest or other income. As much as 55 per cent of bank revenues are earned mainly through lending activities.

Interest-based revenue is generated from what is known as the ‘spread’. The spread is simply the difference between the interest a bank earns on loans extended to customers and the interest paid to depositors for the use of their money. Banks extend loans to individuals to facilitate the purchase of homes, cars or vacations or to pay for an education. Loans to businesses facilitate purchases of new equipment or premises and allow for expansion into new markets. Interest income is also earned from securities the banks own, such as treasury bills or bonds.

Non-interest income accounts for 39.3 per cent of bank revenues. Banks earn this by providing a variety of value-added services, including trading of securities, assisting companies to issue new equity financing, commissions on securities and wealth management. Personal service fees for bank accounts make up about five per cent of total revenues. The fee for a particular service is based on the cost of providing it, staff time, technology and safety measures for any risks involved and the value-added benefit the customer receives.

Net income (after taxes and expenses) is paid to shareholders and also put to use within the banks to do many things, including:

Upgrading technology
Training employees
Expanding and improving products and services
Expanding the capital base of the institutions so the stability of the system is maintained

Who benefits from bank profitability?

Canadians do. The banking industry is a success story and its profitability is very important both to our economy and to individual Canadians.

Most Canadians are shareholders in Canadian banks either directly through share ownership or through pension funds and mutual funds. Pension funds and RRSPs are the main beneficiaries of the billions of dollars that the banks pay in dividends each year.
Banks also employ 267,000 employees in Canada. Thus, the banks and their subsidiaries contribute significantly to job creation and to the Canadian labour market.
Canada’s six largest banks paid $8.3 billion in taxes in Canada in 2010 to all levels of government.
Suppliers to the banks, including businesses of all sizes, all over Canada and the world. Banks made purchases from outside suppliers totaling $14.4 billion in 2010. Banks and their employees are also among Canada's top corporate donors and have a long tradition of community participation. Canada’s charities and non-profit community groups receive multi-million dollar support from banks and every year thousands of bank employees at all levels donate their time and talent to charitable initiatives. These contributions help support a broad range of programs, particularly in the areas of education, the arts, youth, the environment, disaster relief and health care

Canadians value a strong banking sector

Canadians value a strong and profitable banking sector. Canadians are justifiably proud of their banks for their continued strength and stability. Recent polling¹ found that:

Three-quarters of Canadians have favourable views of Canadian banks – a number that grew during the global financial crisis as reports of bank failures and bailouts in other countries dominated the news headlines.
Most of those surveyed said they view banks positively because they get good personal service and they believe their bank is there to meet customers’ needs.
87 per cent of those polled agree that it is important for Canada to have a strong banking sector that can compete internationally – a sector that can support other Canadian businesses that want to do business around the world and create jobs and a stronger economy.

The bottom line: when banks are profitable, they are stable. Canadians value knowing their banks are trustworthy and reliable. When banks succeed, the economy and communities prosper.

General inquiries:
1-800-263-0231 or inform@cba.ca

Media inquiries:
Rachel Swiednicki, Manager, Media Relations
(416) 362-6093, ext. 220 rswiednicki@cba.ca

Printable version (PDF)

Canadian Bankers Association | Backgrounders on Banking Issues

Canada’s Strong Banking System: Benefitting Canadians

Fast facts

The bottom line

Canada has a national banking system with diversified, well-managed institutions

Canada has a strong regulatory system

Canada’s banks are well-capitalized

Mortgage lending in Canada is stable and prudent

A strong and stable banking system benefits all Canadians

Banks and the Economy

Fast facts

The bottom line

Contributing to the Canadian Economy

Serving small business

Banks as taxpayers

Canadians as shareholders

Successful exporters and international competitors

Banks as employers

A Diverse workforce

Banks in the community

Automated Banking Machine Market in Canada

Fast facts

The bottom line

The evolving banking relationship

Number of Bank Owned ABMs2

About the ABM market in Canada

Types of Automated Banking Machines

Types of fees

More about convenience fees

How to avoid extra fees

Banks as Employers

Fast facts

The bottom line

Employment trends

Payroll taxes and employee benefits

Training and development

Indirect contributions to employment

Diversity and inclusion

Employment equity

Women

Visible minorities

People with disabilities

Aboriginal people

What Canadians Think About Their Banking Industry

Fast facts

The bottom line

Canadians have a favourable impression of banks

A strong, stable and secure banking system is important to Canadians

Good choice and competition

Small and Medium-Sized Enterprises

Fast facts

The bottom line

More than just lending

SMEs and bank relationships

SMEs and credit

SME banking needs

SME use of banking services

Strong ties to agriculture

How Canadians Bank

Fast facts

The bottom line

Online banking growing fast

Branch banking: the personal touch

Canadian ABM use still high

Mobile banking

Convenience and banking technology

Safety and security

Fast Facts About the Canadian Banking System

Competition in the Financial Services Sector

Fast facts

The bottom line

Intense Competition

Choice and competition benefits Canadians

Foreign banks in Canada

Consumers have even more choice

Accessible and affordable

Household Borrowing in Canada

Fast facts

The bottom line

Canadians make wise borrowing decisions

Number of Bank Owned ABMs²

Strong regulations⁵