Canada—cross border banking and finance guide
Produced in partnership with Borden Ladner Gervais
Canada—cross border banking and finance guide

The following Banking & Finance practice note produced in partnership with Borden Ladner Gervais provides comprehensive and up to date legal information covering:

  • Canada—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

Canada has a highly competitive banking sector, with a wide range of international and domestic banking institutions carrying on banking activities in Canada. There were 32 domestic Canadian banks as at March 2018. International banks have a presence in Canada through one of the 21 subsidiaries and 33 branches of foreign banks operating in Canada. Banks account for over 50% of the total domestic assets held by the financial services sector, which also includes insurance companies, trust companies, credit unions and other financial institutions. Canada’s six major domestic banks, with their wide-ranging branch networks, account for more than 90% of the banking industry’s domestic assets.

Banks in Canada currently represent over half of all lending supplied to businesses through business loans, short-term promissory notes known as bankers’ acceptances, non-residential mortgages and other lending products. The Bank of Canada has closely monitored the Canadian residential mortgage market over the past several years. In response to growing mortgage credit and uninsured mortgage lending, the Bank of Canada has introduced new underwriting standards for residential mortgages to reduce the maximum size of loans that borrowers can obtain at a given level of income. In the autumn of 2016, changes to mortgage insurance rules made

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