The Canadian Bankers Association (CBA) today welcomed the final report from the Competition Policy Review Panel. Nancy Hughes Anthony, president and CEO of the CBA characterized the panel’s report as a “realistic and workable blueprint to enhance Canada’s competitive advantage”.

The CBA applauds two of the report’s key recommendations. The report said that the “widely held” rule for large financial institutions should be retained and it called on the Minister of Finance to remove the de facto prohibition on bank, insurance and cross-pillar mergers of large financial institutions and subject such mergers only to OSFI and Competition Bureau regulatory safeguards.

“While there is a range of opinions amongst our members on both the widely held rule and large bank and cross-pillar mergers, we told the panel that it was important to address these issues because domestic structural policies have implications for the international competitiveness of Canadian financial institutions,” says Hughes Anthony. “It is now up to the government to decide what to do with the panel’s recommendations and we look forward to contributing to that discussion.”

The banking industry also appreciates the fact that the panel recognized the high degree of competition that exists in financial markets. “Having a clear and accurate view of competition is key to the development of good public policy,” Hughes Anthony says.

The banking industry also agreed with the panel voicing a need for a streamlined regulatory approach to national securities regulation.

“Our current system of 13 securities regulators with 13 sets of regulations imposes unnecessary costs and disincentives on small- and medium-sized businesses and of entrepreneurs and businesses seeking capital to grow and create jobs,” says Hughes Anthony.

“Having a banking sector that is highly competitive internationally provides significant benefits to communities throughout Canada,” adds Hughes Anthony. “Thirty-four per cent of bank profits now come from foreign activities, but 78% of the jobs and 85% of the taxes are paid here in Canada.”

The Canadian Life and Health Insurance Association (CLHIA) also welcomed the report of the panel.

“The life and health insurance industry is pleased that the report recognizes that it is vital for Canada to enhance its competitiveness both domestically and internationally,” says Frank Swedlove, president of the
CLHIA.

Ian Russell, President and CEO, Investment Industry Association of Canada, hailed the report’s recommendations saying, “The competitiveness agenda, calling for a reduction and shift in taxes from income to consumption, measures to develop human capital, reductions in inter-provincial barriers and more efficient regulation is bang on. The recommendations are reasonable and achievable and necessary to promote Canada’s standard of living”.