Banks are getting bigger. But are they getting better? The federal government's Competition Bureau has announced that it will use the big banks' own figures to help it decide on their proposed merger plans. There exists a great deal of different opinions with regard to the issue of Canadian bank mergers; however, it appears as though Canadian officials and private citizens are not favouring the big banks combining. Cited for a number of reasons including lost jobs and higher costs for various transactions, the proposed merging of five of Canada's most influential financial institutions has caused a great deal of concern. In an age when bigger does not always compare to better, Canadians are worried that too much merging will be a costly mistake.
The reasons for bank’s to merge come as no surprise. The Finance Minister
concluded that the mergers are not in the public interest as they would result in:
too much concentration of economic power in Canada in the hands of too few
a reduction in competition in the Canadian financial services sector
a reduction in the Canadian government's flexibility to address future concerns.
The Bureau will follow its practice of gathering information about proposed bank mergers and in analysing any possible anticompetitive effects.
Source: CFIB, results of Environics National Telephone Omnibus,. Respondents asked if they support or oppose "allowing major Canadian banks to merge".
A federal task force gave bank mergers a yellow light on September 15, 1998.
Example Essays Home
