6 Conclusion
The objective of the financial sector review has been to ensure that the sector best meets the needs of all Canadian consumers of financial services and to provide a policy environment conducive to the growth and success of the financial institutions themselves.
The new financial sector framework meets these objectives:
- Canada's banks
will benefit from greater flexibility to adapt to the changing business environment, including potential for joint ventures and strategic alliances; a more flexible ownership structure; a new holding company option; a broader range of permitted investments; a transparent merger review process; a commitment to examine capital taxes with the provinces; and streamlined regulatory processes.
- Canada's trust companies
will benefit from a broader range of permitted investments, the examination of capital taxes with the provinces and streamlined regulatory processes.
- Canada's life insurance companies
will have access to the payments system, a new holding company structure and streamlined regulatory processes.
- Securities dealers
and money market mutual funds will have access to the payments system.
- Canada's credit unions
will be able to restructure themselves to enhance their national presence and better serve their members.
- Consumers
will have guaranteed access to standard low-cost accounts; a process to adjust to branch closures; increased competition for their business from stronger credit unions and new, community-oriented banks; an agency to ensure that financial institutions adhere to consumer protection policies; and access to an independent ombudsman to ensure that they are treated fairly.
- Small and medium-sized businesses
will benefit from increased choice among financial services providers (stronger credit unions, new banks, and foreign bank branches) and an independent ombudsman. There will also be a more comprehensive database on small and medium-sized enterprise lending and a new analytical group at Industry Canada to ensure a better understanding of their financing needs.The government will now proceed to draft the legislation required to implement this framework with a view to tabling the legislation as soon as feasible. The legislation governing Canada's federal financial institutions will remain subject to a five-year sunset clause.
In the future, new challenges and opportunities will continue to arise and new ideas will be brought forward, as both the sector and Canadian society respond to the forces of change.
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