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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART XII.1Authorized Foreign Banks

Application

Marginal note:Application to authorized foreign banks

  •  (1) This Part applies only in respect of the business in Canada of authorized foreign banks.

  • Marginal note:Assets and liabilities

    (2) The assets and liabilities of an authorized foreign bank in respect of its business in Canada, as shown by its books and records, are considered to be the assets and liabilities of the authorized foreign bank in respect of its business in Canada.

  • 1991, c. 46, s. 523
  • 1997, c. 15, s. 86
  • 1999, c. 28, s. 35

Formalities of Authorization

Marginal note:Order permitting carrying on of business in Canada, etc.

  •  (1) On application by a foreign bank, the Minister may make an order permitting the foreign bank to establish a branch in Canada to carry on business in Canada under this Part.

  • Marginal note:Restrictions and requirements

    (2) The order may be made subject to the restrictions and requirements referred to in subsections 540(1) and (2), respectively.

  • Marginal note:Reciprocal treatment

    (3) The Minister may make an order only if the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the authorized foreign bank principally carries on business, either directly or through a subsidiary.

  • Marginal note:Consultation with Superintendent

    (4) The Minister may make an order only if the Minister is of the opinion, after consultation with the Superintendent, that

    • (a) the applicant is a bank in the jurisdiction under whose laws it was incorporated and is regulated in a manner acceptable to the Superintendent; and

    • (b) the applicant’s principal activity is the provision of

      • (i) financial services, or

      • (ii) services that would be permitted by this Act if they were provided by a bank in Canada.

  • 1991, c. 46, s. 524
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 133

Marginal note:Prohibition

 No foreign bank may establish a branch in Canada to carry on business in Canada under this Part if the foreign bank or an entity affiliated with the foreign bank

  • (a) has control of or has a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or

  • (b) engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.

  • 2001, c. 9, s. 134

Marginal note:Prohibition

 No authorized foreign bank and no entity affiliated with an authorized foreign bank may

  • (a) control or have a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or

  • (b) engage in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.

  • 2001, c. 9, s. 134

Marginal note:Application procedure

  •  (1) An application for an order under subsection 524(1) shall be filed with the Superintendent, together with any other information, material and evidence that the Superintendent may require.

  • Marginal note:Publishing notice of intent

    (2) Before filing an application, a foreign bank applicant shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its principal office is to be situated.

  • Marginal note:Objections

    (3) A person who objects to the proposed order may, within thirty days after the date of the last publication under subsection (2), submit the objection in writing to the Superintendent.

  • Marginal note:Minister to be informed

    (4) On receipt of an objection, the Superintendent shall inform the Minister of it.

  • Marginal note:Inquiry into objection and report

    (5) On receipt of an objection, and if the application for the order has been received, the Superintendent shall, if satisfied that it is necessary and in the public interest to do so, hold or cause to be held a public inquiry into the objection as it relates to the application and, on completion of the inquiry, the Superintendent shall report the findings of the inquiry to the Minister.

  • Marginal note:Report to be made available

    (6) Within thirty days after receiving the report, the Minister shall make it available to the public.

  • Marginal note:Rules governing proceedings

    (7) Subject to the approval of the Governor in Council, the Superintendent may make rules governing the proceedings at public inquiries held under this section.

  • 1991, c. 46, s. 525
  • 1999, c. 28, s. 35

Marginal note:Factors to be considered by Minister

 Before making an order under subsection 524(1), the Minister shall take into account all matters that the Minister considers relevant to the application, including

  • (a) the nature and sufficiency of the financial resources of the foreign bank as a source of continuing financial support for the carrying on of its business in Canada;

  • (b) the soundness and feasibility of plans of the foreign bank for the future conduct and development of its business in Canada;

  • (c) the business record and past performance of the foreign bank;

  • (d) the reputation of the foreign bank for being operated in a manner that is consistent with the standards of good character and integrity;

  • (e) whether the proposed authorized foreign bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;

  • (f) the impact of any integration of the businesses and operations in Canada of the authorized foreign bank with those of its affiliates in Canada on the conduct of those businesses and operations; and

  • (g) the best interests of the financial system in Canada.

  • 1991, c. 46, s. 526
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 135

Marginal note:Contents of order

  •  (1) An order made under subsection 524(1) shall set out

    • (a) the name of the authorized foreign bank and, where applicable, the name under which it is permitted to carry on business in Canada;

    • (b) the province in which the principal office of the authorized foreign bank is to be situated;

    • (c) whether the authorized foreign bank is subject to any restrictions and requirements referred to in subsection 524(2); and

    • (d) the date on which the order becomes effective.

  • Marginal note:Provisions of order

    (2) The Minister may set out in the order any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed authorized foreign bank with respect to the carrying on of business in Canada.

  • Marginal note:Terms and conditions

    (3) The Minister may impose any terms and conditions in respect of the order that the Minister considers appropriate.

  • Marginal note:Notice of order

    (4) The Superintendent shall cause to be published in the Canada Gazette a notice of the making of the order.

  • 1991, c. 46, s. 527
  • 1999, c. 28, s. 35
  • 2005, c. 54, s. 79

Marginal note:Amended order

  •  (1) On application by an authorized foreign bank, the Minister may, by further order,

    • (a) [Repealed, 2007, c. 6, s. 75]

    • (b) add any provision referred to in subsection 527(2) or any term or condition referred to in subsection 527(3) or change or remove any of those provisions, terms or conditions that are included in the order made under subsection 524(1) or in any other order made under this section; or

    • (c) add or remove the restrictions and requirements referred to in subsection 524(2).

  • Marginal note:Change of name

    (1.1) On application by an authorized foreign bank, the Superintendent may, by order, change the name under which it is permitted to carry on business in Canada or the province in which its principal office is situated as that name or province is set out in the order made under subsection 524(1) or in any other order made under this section.

  • Marginal note:Notice of intention

    (2) Before making an application under subsection (1), the authorized foreign bank must publish a notice of intention to make the application at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper of general circulation at or near the place where its principal office is situated.

  • 1991, c. 46, s. 528
  • 1999, c. 28, s. 35
  • 2005, c. 54, s. 80
  • 2007, c. 6, s. 75
 
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