Canada’s banking trade body has responded to government plans
Plans to update Canada’s banking regulations have been largely welcomed by the bank’s trade body.
The Canadian Bankers Association has responded to the federal government’s proposals to update the Bank Act and says it supports moves on innovation, competition and cybersecurity in financial services.
“Banking is evolving at record pace. It’s critical that the legislation governing the industry reflects this reality and facilitates the investments in technology that will keep Canada a leader in financial services innovation,” said Neil Parmenter, President and CEO of the Canadian Bankers Association.
Among the key focuses for the CBA’s response is the regulation of collaboration between banks and fintechs, which the association says needs to be clearer.
Due to what it calls the “defining moment for the future of financial insitutions” the CBA is calling for the removal of barriers to emerging fintechs accessing bank capital and for banks to invest in these startups.
The response paper also covers easing the regulatory burden and capital expectations of small and mid-size banks; creating a new cybersecurity strategy and making Canada a global leader in the field; and supporting a dedicated consumer protection framework under the oversight of the Financial Consumer Agency of Canada.
“The federal government is taking important steps in this consultation to modernize the banking ecosystem that will carry Canada into the future and benefit all stakeholders,” added Parmenter.
