Manuel Garrido Looking for a financial partner with good customer service, few fees, competitive rates, and a simple online banking experience? Banks in Canada offer a wide range of services, such as applying for loans, making payments, and creating credit. However, not all banks are the same.
Canada has over 80 banks, including domestic banks, subsidiaries of foreign banks, and full-service branches of foreign banks. Major institutions, such as the Royal Bank of Canada, TD Bank, and Scotiabank, dominate the country. They offer various services, from traditional banking to investment and mortgage solutions.
But it can be difficult to pick the right one in a sea of options. In this article, we’ll help you find the right Canadian bank for you, whether you want to open a simple bank account or find a partner with high-interest savings accounts.
Keep reading to learn about:
How does banking work in Canada?
Canada has a stable and efficient banking system. Over 80 Canadian banks operate within the country, divided into three main types:
- Domestic banks (or Schedule I banks) – best for everyday banking, wealth management, mortgages and personal loans.
- Subsidiaries of foreign banks (or Schedule II banks) – best for business and commercial banking, corporate lending, and trade finance.
- Full-service branches of foreign banks (Schedule III banks) – best for international financing, capital markets, and investment banking.
This tiered structure provides a diverse banking landscape, promoting competition and serving the financial needs of Canadians and expats across the country.
What are the largest banks in Canada?
The five largest banks in Canada, also known as the “Big Five,” are financial institutions with the most market capitalization, total assets, number of clients, revenue, branch, and ATM networks. The “Big Five” dominate the financial system.
Canada’s big banks include:
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Scotiabank
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
Below the “Big Five” are smaller regional and provincial banks, credit unions, and specialized financial institutions catering to specific niches.
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List of Top Ten Canadian Banks
Here is a top ten list of Canadian banks that can fit your financial goals.
Bank name | Tier 1A capital ratio in percentage | Total asset value (in dollars) | Return on Assets (RoA) percentage | |
1 | Royal Bank of Canada | 14.6 | 1.511 trillion | 0.8 |
2 | Toronto-Dominion Bank | 14.8 | 2.046 trillion | 0.4 |
3 | Bank of Nova Scotia | N/A | 1.412 trillion | 0.8 |
4 | Bank of Montreal | 13.27 | 4 trillion | 1.08 |
5 | Canadian Imperial Bank of Commerce (CIBC) | 14.8 | 746.88 billion | 0.71 |
6 | Desjardins Group | 21.0 | 464. 7 billion | N/A |
7 | National Bank of Canada | N/A | 333.83 billion | 0.82 |
8 | HSBC Bank Canada | 15 | 119.7 billion | 0.05 |
9 | Laurentian Bank of Canada | 10.9 | 48.8 billion | -0.01 |
10 | Canadian Western Bank | 11.9 | 43.1 billion | 0.7 |
1. Royal Bank of Canada
- Headquarters: Toronto, Ontario
The Royal Bank of Canada (RBC) is one of Canada’s leading financial institutions. RBC has earned a reputation for its stability, innovation, and customer-centric approach. This general bank offers a wide array of banking services, including retail and commercial banking, wealth management, investment banking, and insurance is renowned for its commitment to digital banking, providing customers with convenient and modern financial solutions while maintaining a strong presence with branches and ATMs nationwide.
2. Toronto-Dominion Bank
- Headquarters: Toronto, Ontario
The Toronto-Dominion Bank, commonly known as TD Bank, is a prominent Canadian financial institution. TD Bank is one of Canada’s “Big Five” banks. This general bank provides a comprehensive range of financial services, including retail and commercial banking, wealth management, and investment banking. TD Bank has an extensive North American footprint, with a strong presence in both Canada and the United States. It provides a customer-centric approach with commitment to innovation, making it a trusted choice for individuals and businesses.
3. Bank of Nova Scotia
- Headquarters: Toronto, Ontario
The Bank of Nova Scotia, also often referred to as Scotiabank, is a prominent Canadian financial institution with a significant international presence. Scotiabank offers a wide range of financial services, including retail and commercial banking, wealth management, and international banking. The bank focuses on international expansion, particularly in Latin America. Scotiabank’s long history and global reach make it a prominent player in Canada’s banking sector.
4. Bank of Montreal
- Headquarters: Montreal, Quebec
The Bank of Montreal (BMO) is one of Canada’s oldest and most respected financial institutions. BMO offers a comprehensive choice of financial services, including retail and commercial banking, wealth management, and investment banking. This general bank has a strong presence in both Canada and the United States, making it a key player in North American finance. BMO is known for its commitment to innovation and customer-centric approach, earning trust among individuals and businesses alike.
5. Canadian Imperial Bank of Commerce (CIBC)
- Headquarters: Toronto, Ontario
The Canadian Imperial Bank of Commerce (CIBC) is a popular Canadian financial institution. CIBC provides a wide range of financial services and has a strong national and international presence, with a focus on customer-centric solutions and digital banking innovation. CIBC’s long history and commitment to community initiatives make it a trusted choice for individuals and businesses seeking financial services in Canada and beyond.
6. Desjardins Group
- Headquarters: Lévis, Quebec
Desjardins Group is a citizens bank renowned for its unique cooperative ownership structure. This citizens bank was primarily servicing Quebec but has expanded its footprint across Canada. For example, in 2011, Desjardin Group acquired Bank West, a Canadian chartered bank.
Desjardins has a comprehensive selection of financial services on offer, including banking, insurance, wealth management, and more. With a strong commitment to social responsibility and community development, Desjardins is an equitable bank that stands out for its cooperative values, emphasizing member ownership and local community support as key pillars of its operations.
7. National Bank of Canada
- Headquarters: Montreal, Quebec
The National Bank of Canada (NBC) is the country’s sixth largest bank by total banking assets. NBC was founded in 1859 and offers a wide range of financial services. While it primarily operates in Canada, NBC also has an international presence. Known for its customer-focused approach and commitment to innovation, the bank plays a vital role in the Canadian financial landscape, serving individuals, businesses, and institutions with tailored financial solutions. This may be interesting for expats who are looking to move to the country and gain Canada citizenship by investment or wish to understand more before applying for a permanent residence visa.
8. HSBC Bank Canada
- Headquarters: Vancouver, British Columbia
HSBC Bank Canada, a foreign bank, is a subsidiary of the global banking giant HSBC Holdings plc. It serves as HSBC’s presence in Canada, offering a wide range of financial services. HSBC Bank Canada has a significant international focus, facilitating trade and international banking for clients. It is known for its global reach, comprehensive banking solutions, and expertise in international markets. HSBC Bank Canada plays a vital role in supporting the Canadian economy’s international connections.
9. Laurentian Bank of Canada
- Headquarters: Montreal, Quebec
Laurentian Bank of Canada is a regional bank headquartered in Montreal, Quebec. As one of Canada’s chartered banks, it specializes in serving the Quebec market. The regional bank offers a range of financial services, including personal and commercial banking, wealth management, and mortgage solutions. Laurentian Bank is recognized for its commitment to the local community and its personalized approach to banking services, making this regional bank a trusted choice for individuals and businesses in the province of Quebec.
10. Canadian Western Bank
- Headquarters: Edmonton, Alberta
Canadian Western Bank (CWB) is one of Canada’s younger banks. CWB operates primarily in Western Canada and focuses on serving businesses and individuals in the Western provinces. CWB’s approach is characterized by personalized service and a deep understanding of the unique economic landscape in Western Canada, and it plays a crucial role in supporting the region’s growth and development.
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Summary
Banks in Canada are well-known for their independent stability, and this is something that should strike every expat who considers investing in or moving to Canada with confidence.
Canada’s major banks are mostly national institutions (with some foreign banks permitted) have been around for many years and are all concerned with providing the best service to their customers.
Which bank you ultimately work with is up to you and your financial circumstances and preferences, but rest assured that your wealth is in good hands and your best interests are always put first.
Frequently Asked Questions About Banks in Canada
What are the largest banks in Canada?
The “Big Five” banks are the Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Bank), Scotiabank, Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC). These domestic banks collectively dominate the Canadian banking sector.
Which bank is best in Canada?
It depends on your financial needs and preferences. The “Big Five” banks, including RBC, TD Bank, Scotiabank, BMO, and CIBC, are widely recognized for their stability and services. Research and compare to find the one that suits your specific banking requirements.
What are the ten largest banks in Canada?
The ten largest banks are the Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce, Desjardin Group, National Bank of Canada, HSBC Canada, Laurentian Bank of Canada and Canadian Western Bank.
Which bank is the biggest in Canada by assets?
The Royal Bank of Canada (RBC) is the biggest in Canada by assets, exceeding two trillion Canadian dollars. RBC has a vast domestic and international presence, with offices in 13 countries across three continents.
Which Canadian bank offers the best mortgage rates?
The mortgage rates vary based on the specific mortgage product, term, length, and personal financial situation. Among the ten best banks in Canada, the Canadian Imperial Bank of Commerce (CIBC) has the lowest five-year fixed high-ratio at 3.99 percent for new mortgages only.
Which banks in Canada have no monthly fees?
Some banks offer no monthly fees for certain accounts. For example, Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), and Scotiabank have no monthly fees for students and youth under 18. Toronto-Dominion Bank (TD) also has no-fee options for individuals with $4,000 or over in their account by the end of each day of the month.
Which US bank has branches in Canada?
There are a number of American banks that have branches in Canada, most notably the Bank of America and the Bank of New York Mellon.
Does Chase Bank have branches in Canada?
Yes, Chase Bank has branches in Canada. Chase Bank is a US-based financial institution that offers cross-border banking options for Canadians. You can find branches in Canada’s major cities.
