Canada proposes easing bank ownership rules and raising deposit insurance
Canada’s government 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. The government also plans legislation to raise deposit insurance from C$100,000 to C$250,000 per account. Officials said the measures aim to strengthen competition with the six largest domestic banks.