Trump Confuses Bank of Canada With Commercial Retailer
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The U.S. President suggested Canada's central bank operates branches in the U.S. while claiming American banks are barred from Canadian soil.
U.S. President Donald Trump suggested during an Oval Office event on Wednesday that the Bank of Canada is a commercial bank with locations in the United States, according to CBC News.
While answering questions regarding the decline of Canadian tourism, Trump claimed that Canada prevents American banks from operating within its borders, stating, "They have their banks here, Bank of Canada, all of their big banks, big beautiful banks." He further asserted that the U.S. is not permitted to have banks in Canada.
CBC News reports that these claims are false. The Bank of Canada is not a retail commercial bank for citizens, but a Crown corporation that manages banking services for the federal government and determines interest rates. On Wednesday, the Bank of Canada maintained its benchmark interest rate at 2.25 per cent, though its governor noted rising inflation.
Regarding the presence of U.S. firms, CBC News notes that several American institutions operate in Canada as "Schedule 2" foreign-owned banks with Canadian subsidiaries. Examples include Citibank, which has been in Canada for over a century, and JPMorganChase, which employs approximately 600 people in the country.
CBC News clarifies that U.S. companies would face significant restrictions if they tried to acquire any of the "Big Six" domestic banks—Royal Bank, Bank of Montreal, Scotiabank, CIBC, TD Bank, and National Bank. These "Schedule 1" institutions must be Canadian-owned to take deposits and currently hold the vast majority of total bank assets in Canada.