FACT FOCUS: Trump claims US banks cannot operate in Canada. That’s not true
Summary
President Donald Trump said that U.S. banks are not allowed to do business in Canada, but this is not true. U.S. banks can operate in Canada, although they may face some rules and limits that make it harder to compete.Key Facts
- President Trump claimed U.S. banks cannot operate in Canada, which experts say is false.
- There are 15 U.S.-based banks working in Canada as branches or subsidiaries.
- Canadian banking rules separate banks into three types: Schedule I (Canadian-owned), Schedule II (foreign subsidiaries), and Schedule III (foreign branches).
- Most U.S. banks in Canada are Schedule III branches and face certain restrictions, like high deposit requirements.
- Canadian banks also operate in the U.S., with eight Canadian banks currently in the American market.
- The Bank of Canada is the country's central bank, like the U.S. Federal Reserve, and is not a commercial bank.
- The combined assets of U.S. bank branches and subsidiaries in Canada are about 124.6 billion Canadian dollars (around 904 million U.S. dollars).
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