The Canadian Federation of Independent Business is strongly opposed to any endorsement by the Senate’s banking, trade and commerce committee of bank mergers.

“I honestly can not understand how,
after looking at the financial services landscape in Canada, the committee could rationally conclude that mergers between any of Canada’s chartered banks could be in the public interest,” says CFIB president Catherine Swift. “We believe the Senate and House of Commons Committees should focus discussions on how to develop a more competitive, diversified financial sector which is more responsive to consumer and small and medium-sized enterprises needs, rather than expending precious resources on the process to allow two of the five major banks to merge.”

When mergers between the Bank of Montreal & Royal Bank, and CIBC & TD
were proposed in 1998, small business owners across Canada had serious
objections because of the decrease in competition such mergers would entail. Since that time little has changed in the banking environment to make the prospect more appealing, says Swift.

Small business concerns surrounding less competition include the impact of mergers on service charges, banking relationships, loan
rejections and access to credit. This is especially true for members in rural areas, who traditionally have fewer banking choices.