Bank mergers will hurt Canadians: Godsoe

Article Abstract:

Bank of Novia Scotia chairman Peter Godsoe has criticized two separate mergers involving four banks and maintained the deals would hurt Canadian. He told the Liberal caucus task force on the future of financial services and said the mergers would mean less competition and less choice. Godsoe also indicated that the mergers of Canadian Imperial Bank with Toronto-Dominion and Bank of Montreal with Royal Bank of Canada would lead to a level of concentration in the banking sector not to be tolerated in any other industrialized country. He reasoned that the combined firms will have control of 70% of personal deposits and personal loans and mortgages, as well as three-quarters of small business lending in the Canadian banking sector.

Comment:

Chairman Peter Godsoe criticizes 2 separate mergers involving four banks, saying they would lead to less competion & less choice

Strategy & planning, Bank of Nova Scotia (Canada)

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MPs push for end to tied selling

Article Abstract:

The House of Commons finance committee is petitioning the Canadian government to proclaim a Bank Act section that would forbid tied selling. The committee declared in a report that the existing prohibitions in the Competition Act do not provide efficient consumer protection. Liberal MP Maurizio Bevilacqua, who is the committee's chairman, stated that the committee has concrete evidence based on complaints to bank ombudsmen and regulators that tied selling is prevalent among banks. The finance committee is also seeking regulators to handle consumer complaints and protect current regulations.

Comment:

Canada: House of Commons finance committee petitions the govt to proclaim a Bank Act section that would forbid tied selling

Government regulation (cont)

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