Canada proposes easing bank ownership rules to bolster competition
Canada proposed raising the equity threshold at which banks must be widely held from C$12 billion to C$25 billion, according to Finance Minister François-Philippe Champagne’s budget documents. Canadian units of foreign banks with equity below C$8 billion would not need a public float if their parent is widely held and listed abroad. Officials said the proposals aim to strengthen competition with the six largest domestic banks. The government also plans legislation raising deposit insurance from C$100,000 to C$250,000 per account.