Canadian Banks and Global Competitiveness

While there has been considerable concern about the competitiveness of Canadian industries in the increasingly competitive global environment, James Darroch shows that the Canadian financial services sector has been a successful competitor in international markets. Four Canadian banks - the Royal Bank of Canada, the Canadian Imperial Bank of Commerce, the Bank of Montreal, and the Bank of Nova Scotia - rank among the ten largest banks in North America. More importantly, they are recognized by industry insiders to be among the best managed banks not only in North America but in the world. While the status of the major Canadian banks in international capital markets may be surprising to some - since it is disproportionate to the size of Canadian financial markets - the international orientation of these banks has served to offset many of the limitations imposed by the Canadian market.