Notes for Tables - Chartered Banks

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Canada’s commercial banking system consists of privately owned banks that have been chartered by Parliament or have received letters patent by order-in-council as provided for in the 1991 Bank Act. The 1980 Bank Act first provided for Canadian financial institutions affiliated with foreign banks to become incorporated as Canadian banks and allowed the establishment of new foreign-owned banks in Canada. Beginning February 2000, foreign banks were also permitted to operate branches in Canada. To see which banks (domestic banks, foreign subsidiaries and branches) are currently operating in Canada, please visit OSFI for more details. The banks operate under the terms and provisions of the Bank Act, which defines their range of activities and regulates certain internal aspects of their operations as well as their relationship with the government and the Bank of Canada. Under the Act, the banks are required to submit reports on their operations to the Office of the Superintendent of Financial Institutions and the Bank of Canada. The data in Chartered Banks tables and Monetary Aggregates and Credit Measures tables are based on these reports and include the principal banking statistics. It has been the practice to revise the Bank Act at approximately 10-year intervals. The most recent revision was in 1991. As a result of these revisions, as well as periodic changes in regulations and changes in the structure of the industry due to mergers, earlier data are not always strictly comparable. Users are referred to the notes to the tables in the December 1982 Review and earlier issues of the Review for a description of the impact on the data of Bank Act revisions. Coincident with the 1980 Bank Act revision, the reporting system was substantially revised, and the new system was implemented on 1 November 1981. The level of consolidation and the treatment of accrued interest were two of the more significant changes. Users should refer to the article in the November 1981 issue of the Review for an overview of the changes. Starting in November 1993 additional revisions to the chartered banks’ reporting system were implemented. Users should refer to the article in the winter 1993-94 issue of the Review for an overview of the changes.

Beginning January 2011, the Canadian Accounting Standards Board (AcSB) adopted International Financial Reporting Standards (IFRS). Chartered banks converted to IFRS at the start of their first fiscal year following 31 December 2010. The most significant effect relates to the inclusion of securitized loans on banks’ balance sheets, which were previously shown as loans held by Special Purpose Corporations or NHA mortgage- backed securities. This reallocation of credit primarily affects the January and November 2011 reference months.

Beginning November 1993, chartered banks reported treasury bills and other securities at their amortized value if held in investment accounts or at market value if held in trading accounts (including those at investment dealer subsidiaries). Since most of these securities were held in investment accounts, Chartered Banks tables continued to make reference to holdings at amortized value; users should note, however, that the data also include some securities valued at market. Beginning with data for the first fiscal quarter of 2007, such assets are marked-to-market in accordance with applicable Canadian accounting standards.

The continuity of chartered bank statistics has been affected at times by the conversions of non-bank financial institutions. La Banque Populaire (previously a savings bank, La Banque d’Économie de Québec) commenced operations as a chartered bank on 10 November 1969. As a result, Canadian dollar deposits of the chartered banks at 30 November 1969 were increased by $66 million. The principal asset items affected were general loans, other residential mortgages and provincial and municipal securities. On 4 June 1979, the Continental Bank of Canada began operations, initially as a wholly owned subsidiary of IAC Limited; the two institutions merged on 1 November 1981. Citibank Canada merged with three Canadian subsidiaries of its parent company, Citibank N.A., effective 1 November 1982.

The Laurentian Bank (previously Montreal City and District Savings Bank) commenced operations as a chartered bank on 28 September 1987. As a result, Canadian dollar deposits of the chartered banks were increased by $3,565 million at that date. The principal asset items affected were residential mortgages, corporate securities and general loans. On 25 January 1988, the Laurentian Banking Group purchased Eaton-Bay Trust. Upon acquisition, the Laurentian Banking Group divided the acquired assets and liabilities among its three companies. As a result, Canadian dollar deposits of chartered banks at 31 January 1988 were increased by $207 million. The principal asset items affected were mortgages and securities.

On 29 May 1990, $264 million in consumer loans to Canadian residents on the books of American Express were transferred to Amex Bank of Canada when it began operations as a chartered bank.

On 28 June 1991, the Laurentian Bank of Canada acquired the selected assets and liabilities of Standard Trust Company. As a result, Canadian dollar deposits of the chartered banks were increased by $1,285 million on that date. The principal assets affected were residential mortgages and treasury bills.

On 1 November 1991 the Laurentian Bank of Canada acquired La Financière Coopérants Inc. Canadian dollar liabilities were increased by $973 million. The principal asset items affected were personal loans and residential and non-residential mortgages.

On 3 March 1992, Laurentian Bank acquired Guardian Trust. As a result, Canadian dollar deposits of the chartered banks were increased by $427 million. The principal assets affected were residential and non-residential mortgages.

On 2 July 1992, the Canadian Imperial Bank of Commerce acquired Morgan Trust. As a result, Canadian dollar deposits of the chartered banks were increased by $257 million. The principal assets affected were residential mortgages.

On 1 January 1993, the Toronto-Dominion Bank purchased assets and liabilities of Central Guaranty Trust Company and Central Guaranty Mortgage Company. As a result, Canadian dollar liabilities of the chartered banks increased by $10,990 million effective that date. The principal assets affected were mortgages and personal loans.

On 1 January 1993, Manulife Bank of Canada was formed from the merger of Regional Trust, Cabot Trust, and Huronia Trust. Effective that date, deposits of the chartered banks increased by $840 million. The principal assets affected were mortgages.

On 1 February 1993, the Laurentian Bank of Canada purchased General Trust Corporation. Effective that date, deposits of the chartered banks increased by $1,367 million. The principal assets affected were mortgages.

On 21 July 1993, the National Bank of Canada purchased Trust General of Canada and Sherbrooke Trust Company. Effective that date, deposits of the chartered banks increased by $3,061 million. The principal assets affected were mortgages.

On 1 September 1993, Royal Bank of Canada purchased Royal Trust Company, Royal Trust Corporation, and certain other operating subsidiaries of Gentra Inc. Effective that date, deposits of the chartered banks, on a consolidated basis, increased by $14,637 million. The principal assets affected were mortgages.

On 24 January 1994, the Laurentian Bank of Canada purchased the principal assets and liabilities of Prenor Trust Company. Effective that date, deposits of the chartered banks increased by $810 million. The principal assets affected were mortgages.

On 12 April 1994, the Bank of Nova Scotia purchased the Montreal Trust Company. Effective that date, deposits of the chartered banks increased by $8,998 million. The principal assets affected were mortgages.

On 7 September 1994, the Bank of Montreal purchased Burns Fry Ltd. Effective that date, deposits of the chartered banks increased by $307 million.

On 3 October 1994, the National Bank of Canada purchased deposits of the Confederation Trust Company. Effective that date, deposits of the chartered banks increased by $669 million.

On 19 December 1994, the Toronto-Dominion Bank purchased mortgages of the Confederation Trust Company. Effective that date, residential mortgages of the chartered banks increased by $200 million.

On 1 January 1995, the Canadian Western Bank purchased North West Trust Company. Effective that date, deposits of the chartered banks increased by $561 million. The principal assets affected were mortgages.

On 27 March 1995, the Hongkong Bank purchased deposits of the Income Trust Company. Effective that date, deposits of the chartered banks increased by $192 million.

On 1 August 1995, the Hongkong Bank acquired Metropolitan Trust Company. Effective that date, deposits of the chartered banks increased by $374 million. The principal assets affected were mortgages.

On 1 October 1995, Laurentian Bank acquired North American Trust Company and NAL Mortgage Company. Effective that date, deposits of the chartered banks increased by $2,491 million. The principal assets affected were residential mortgages and personal loans.

On 31 October 1995, the Canadian Imperial Bank of Commerce acquired FirstLine Trust Company. Effective that date, deposits of the chartered banks increased by $587 million. The principal assets affected were residential mortgages.

On 22 December 1995, the Bank of Montreal acquired Household Trust. Effective that date, deposits of the chartered banks increased by $1,052 million. The principal assets affected were residential mortgages.

On 1 June 1996, the Laurentian Bank acquired Savings and Investment Trust Company. Effective that date, deposits of chartered banks increased by $569 million. The principal assets affected were residential mortgages.

In July 1996, Canadian Western Bank purchased Aetna Trust Company. Effective that date, deposits of the chartered banks increased by $263 million. The principal assets affected were non-residential mortgages.

On 1 November 1996, the National Bank of Canada acquired Municipal Savings and Loan Corporation. Effective that date, deposits of the chartered banks increased by $832 million. The principal assets affected were residential mortgages.

On 1 November 1996, the Royal Bank of Canada purchased Richardson Greenshields. Effective that date, deposits of the chartered banks increased by $601 million.

On 20 January 1997, Citizens Bank of Canada was formed from Citizens Trust Company. Effective that date, deposits of the chartered banks increased by $548 million. The principal assets affected were residential mortgages.

On 9 August 1997, ING Trust Company of Canada became a bank (ING Bank of Canada). Effective that date, deposits of the chartered banks increased by $45 million.

On 14 August 1997, the Bank of Nova Scotia purchased National Trust and Victoria and Grey Mortgage Corporation. Effective that date, deposits of the chartered banks increased by $12.8 billion. The principal assets affected were mortgages and personal loans.

On 26 April 1999, the Royal Bank of Canada purchased Connor Clark Private Trust Company. Effective that date, deposits of the chartered banks increased by $921 million. The principal assets affected were residential mortgages.

On 11 August 1999, Canada Trust purchased five Citibank retail branches. Effective that date, deposits of the chartered banks decreased by $337 million. The principal assets affected were residential mortgages.

On 13 August 1999, the National Bank of Canada purchased First Marathon Inc. Effective that date, deposits of the chartered banks increased by $245 million.

On 1 February 2000, the Toronto-Dominion Bank purchased Canada Trust. Effective that date, deposits of the chartered banks increased by $41.7 billion. The principal assets affected were personal loans.

On 1 March 2000, Laurentian Bank purchased Sun Life Trust. Effective that date, deposits of the chartered banks increased by $1,783 million. The principal assets affected were residential mortgages.

On 2 May 2001, State Street Trust became a bank (State Street Bank and Trust Company). Effective that date, deposits of the chartered banks increased by $1,622 million.

On 23 June 2001, Bank of Nova Scotia purchased Fortis Trust Corporation. Effective that date, deposits of the chartered banks increased by $52 million. The principal assets affected were residential mortgages.

On 28 December 2001, the Canadian Imperial Bank of Commerce purchased the Canadian private client business of Merrill Lynch Canada Inc. Effective that date, deposits of the chartered banks increased by $1.8 billion. The principal assets affected were personal loans.

On 1 August 2002, Pacific & Western’s eTrust of Canada became a bank (Pacific & Western Bank of Canada). Effective that date, deposits of the chartered banks increased by $625 million. The principal assets affected were personal loans.

On 1 July 2003, Canadian Tire Financial Services became a bank (Canadian Tire Bank). Effective that date, personal loans of the chartered banks increased by $1,980 million.

On 15 December 2003, Sears Financial Services Ltd. and Sears Acceptance Co. merged to form Sears Canada Bank. Effective that date, personal loans of the chartered banks increased by $2,866 million.

On 31 March 2006, Bank of Nova Scotia purchased Maple Trust Company. Effective that date, deposits of the chartered banks increased by $1.1 billion. The principal assets affected were residential mortgages.

On 1 August 2012, B2B Bank (a wholly owned subsidiary of Laurentian Bank) purchased AGF Trust. Effective that date, deposits of the chartered banks increased by $2.8 billion. The principal assets affected were personal loans and residential mortgages.

As a result of a financial institution reclassifying loans from mortgages to non- mortgages, aggregate bank balance sheet data are inconsistent from January 2002 - September 2011 between Chartered bank selected assets: Monthly average (formerly C1); Non-mortgage loans, Personal, Total (V36717) and Mortgages, Residential (V36724) and Chartered bank assets: Month-end (formerly C3); Loans, Non-mortgage loans, Personal loans (V36924) and Mortgages, Residential (V36918).

On 27 July 2012, Royal Bank of Canada purchased the remaining 50% share of RBC Dexia. Effective that date, deposits of the chartered banks increased by $3 billion.

On November 2012, Bank of Nova Scotia purchased ING Bank of Canada. This acquisition resulted in a reclassification between detailed deposits categories published in Chartered bank selected liabilities: Monthly average (formerly C2) and Selected monetary aggregates and their components (formerly E1). Continuity adjustments in table Selected monetary aggregates and their components (formerly E1) have been updated to account for this reclassification.

On 1 February 2013, Royal Bank of Canada purchased Ally Financial Inc. Effective that date, deposits of the chartered banks increased by $3.5 billion. The principal assets affected were personal loans and business loans.

On 1 July 2013, Equitable Trust became Equitable Bank. Effective that date, deposits of the chartered banks increased by $6.0 billion. The principal assets affected were residential and non-residential mortgages.

On 1 January 2017, Concentra Financial Services Association became Concentra Bank. Effective that date, deposits of the chartered banks increased by $3.4 billion. The principal assets affected were residential and non-residential mortgages.

On 11 June 2018, Equity Financial Trust became Haventree Bank. Effective that date, deposits of the chartered banks increased by $1.3 billion. The principal assets affected were residential mortgages.

Chartered bank selected assets: Monthly average (formerly C1)

Source: Bank of Canada

From November 1981, data in Chartered bank selected assets: Monthly average (formerly C1) and Chartered bank selected liabilities: Monthly average (formerly C2) include all wholly and majority owned subsidiaries of the chartered banks, and accrued interest is not included in the various asset and liability items but rather is included in other assets and other liabilities. Prior to this date, the data consolidated only foreign wholly owned banking subsidiaries, and accrued interest was included on an item-by-item basis. Data for the monthly average series are available from August 1953.

Foreign currency loans to residents have been reclassified historically out of business sector financing and into household credit. For chartered bank assets, beginning November 2015, V36717 and V36724 in Chartered bank selected assets: Monthly average (formerly C1) will no longer match V122700 and V122738 in Selected credit measures (formerly E2) respectively. This is due to V36717 and V36724 displaying Canadian dollar assets only.

Treasury bills were reported at par value up until October 1981. Beginning November 1981 they were reported at amortized value. Beginning with data for the first fiscal quarter of 2007, such assets are marked-to-market in accordance with applicable Canadian accounting standards.

Government of Canada direct and guaranteed bonds are at amortized value and until November 1981 include accrued interest.

Call and short loans to investment dealers and stockbrokers include special call loans. Special call loans can be liquidated by either the lender or borrower on the same day that notice is given or in 24 hours after notice is given.

Holdings of selected short-term assets — other. Other holdings of selected short- term assets consist of bankers’ acceptances of other banks and deposits with other banks until November 1994; since then they have consisted of acceptances of other regulated financial institutions and deposits with other regulated financial institutions.

Short-term paper consists of notes, treasury bills and like evidences of indebtedness payable in Canadian dollars and issued for a term of one year or less (Government of Canada treasury bills and bankers’ acceptances of other banks are excluded). Short-term paper acquired directly from the issuer was included in loans, while paper acquired in the market was included in Canadian securities until November 1981. Since then all paper acquired by the banks is classified as securities. Acceptances of the reporting bank, when bought by the bank, are classified as loans.

Less liquid assets until November 1981 included securities with a term of less than one year that were purchased directly from an issuer at time of issue. Canada Savings Bonds loans are loans to finance purchases of Canada Savings Bonds (CSBs) at the time of issue, including those CSBs purchased by payroll deduction. Effective 5 November 1986, sales under the Monthly Savings Plan were discontinued. Moreover, the banks have sold to the government a participation in the major portion of loans advanced for payroll purchases. Personal loans include personal loans against marketable securities, home improvement loans, student loans, loans to purchase Canada Savings Bonds, and all other loans to individuals to finance the purchase of consumer goods and services (see Chartered banks: Classification of non-mortgage loans (formerly C7)). Certain personal loans have been reclassified into business loans, resulting in a reduction in personal loans and an increase in business loans of approximately $900 million in November 1981.

Beginning July 1991, non-mortgage loans to Canadian residents and to non- residents for business purposes are split between reverse repurchase agreements and business loans. Reverse repurchase agreements entail the purchase of securities today with an agreement to resell the securities at a later date.

Non-mortgage loans to non-residents for business purposes include loans to foreign governments.

Canadian securities before November 1981 did not include securities with a term of less than one year at time of issue that were purchased directly from an issuer, since these were classified as loans. Provincial securities include securities guaranteed by provincial governments. Provincial and municipal securities were reported at amortized value until first fiscal quarter of 2007, at which time they started being marked-to-market. Corporate securities were reported at not more than marked value until October 1981. Beginning with data for November 2007, such assets are marked-to-market in accordance with applicable Canadian accounting standards.

Net foreign currency assets are defined as the total of gold coin and bullion; foreign currency; bank deposits in foreign currencies; foreign securities; foreign-pay securities issued by Canadian borrowers; day, call and short loans to investment dealers and stockbrokers in foreign currencies; other loans in foreign currencies; investment in controlled corporations abroad (up to November 1981); and net foreign currency items in transit less deposits by banks in foreign currencies and other deposits in foreign currencies. Total foreign currency assets and total foreign currency liabilities are shown in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4), respectively.

Chartered bank selected liabilities: Monthly average (formerly C2)

Source: Bank of Canada

From November 1981, data in Chartered bank selected assets: Monthly average (formerly C1) and Chartered bank selected liabilities: Monthly average (formerly C2) include all wholly and majority owned subsidiaries of the chartered banks, and accrued interest is not included in the various asset and liability items but rather is included in other assets and other liabilities. Prior to this date, the data consolidated only foreign wholly owned banking subsidiaries, and accrued interest was included on an item-by-item basis. Data for the monthly average series are available from August 1953.

Estimated net private sector float consists of cheques and other items relating to private sector deposits that have not been cleared, which create an element of double counting in the Canadian dollar deposit liabilities of the chartered banks. Prior to December 1985, the figures for total float shown in Chartered bank selected liabilities: Monthly average (formerly C2) were estimated by the Bank of Canada based on weekly data for total Canadian dollar major liabilities and total major assets and on the most recent month-end data for the net balance of other liability and asset items. Beginning in December 1985, total float has been reported directly by the chartered banks. Both the estimated total float data and that reported directly are adjusted to exclude float relating to Government of Canada and Bank of Canada transactions.

Bankers’ acceptances outstanding. When a bank purchases its own acceptances for investment purposes, these purchases are included in general loans and are netted from the amount of bankers’ acceptances outstanding on both the asset and liability side of the balance sheet. Purchases of acceptances of other regulated institutions are included in Canadian dollar deposits with other regulated financial institutions in Chartered bank assets: Month-end (formerly C3).

Chartered bank assets: Month-end (formerly C3)

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) summarize total chartered bank assets and liabilities at month-end from November 1981 onward. These data are, for the most part, a continuation of month-end assets and liabilities based on the consolidated monthly balance sheet return, Schedule J of the 1980 Bank Act and Schedule M of the 1967 Bank Act. The earlier month-end data are available in the December 1982 Review and in previous issues. In addition to the format changes, the data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) differ from earlier data because of changes in the level of consolidation and other accounting practices. From November 1981, data include all wholly and majority owned subsidiaries of the chartered banks, and accrued interest is not included in the various asset and liability items but rather is included in other assets and other liabilities. Prior to this date, the data consolidated only foreign wholly owned banking subsidiaries, and accrued interest was included in the related asset or liability item. Equity accounting is used to take account of a bank’s investment in companies in which it holds at least 20 per cent and not more than 50 per cent of the companies’ voting shares. The data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) differ from data prior to November 1981 in the following ways: (i) all debt securities are valued at amortized value, (ii) interim profits are transferred to retained earnings quarterly rather than at the end of each fiscal year, and (iii) letters of credit and guarantees are no longer included as balance sheet items. All these changes are described in more detail in the article “The new chartered bank statistical reporting system,” published in the November 1981 issue of the Review.

Since November 1996, Other Canadian dollar assets and Other liabilities include, on a gross basis on both sides of the balance sheet, the unrealized gains and losses on marked-to-market bank derivatives positions (unless they meet certain criteria). These had previously been reported on a net basis on one side of the balance sheet. Beginning in November 2006 due to the fair value accounting standards the unrealized gains and losses will be reported in Accumulated Other Comprehensive Income.

Corporate securities include securities of corporations associated with banks that consist of all common and preferred shares, debt securities, and the chartered banks’ share of the earnings of these companies. Associated corporations are those companies in which a bank owns at least 20 per cent and not more than 50 per cent of the voting shares.

Call and short loans to investment dealers and stockbrokers include special call loans. Special call loans can be liquidated by either borrower or lender on the same day that notice is given or in 24 hours after notice is given. They are typically secured by short- term paper and other money market securities. Data prior to July 1992 include day-to-day loans.

Leasing receivables reflect the financial leasing activities of wholly owned chartered bank leasing subsidiaries carried on according to Section 464 of the 1991 Bank Act. Residential mortgages are loans secured by real estate, including buildings of which at least 50 per cent of the floor space is used or will be used for permanent private accommodation. Non-residential mortgages are all mortgages not classified as residential, such as those on hotels, stores, office buildings, garages, theatres, warehouses, industrial plants, institutional properties, farms, and vacant land.

Other assets include land, buildings and equipment, and other assets.

Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4)

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) was previously named Chartered bank liabilities — Month-end series (C4)..

Data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) summarize total chartered bank assets and liabilities at month-end from November 1981 onward. These data are, for the most part, a continuation of month-end assets and liabilities based on the consolidated monthly balance sheet return, Schedule J of the 1980 Bank Act and Schedule M of the 1967 Bank Act. The earlier month-end data are available in the December 1982 Review and in previous issues. In addition to the format changes, the data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) differ from earlier data because of changes in the level of consolidation and other accounting practices. From November 1981, data include all wholly and majority owned subsidiaries of the chartered banks, and accrued interest is not included in the various asset and liability items but rather is included in other assets and other liabilities. Prior to this date, the data consolidated only foreign wholly owned banking subsidiaries, and accrued interest was included in the related asset or liability item. Equity accounting is used to take account of a bank’s investment in companies in which it holds at least 20 per cent and not more than 50 per cent of the companies’ voting shares. The data in Chartered bank assets: Month-end (formerly C3) and Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) differ from data prior to November 1981 in the following ways: (i) all debt securities are valued at amortized value, (ii) interim profits are transferred to retained earnings quarterly rather than at the end of each fiscal year, and (iii) letters of credit and guarantees are no longer included as balance sheet items. All these changes are described in more detail in the article “The new chartered bank statistical reporting system,” published in the November 1981 issue of the Review.

Since November 1996, Other Canadian dollar assets and Other liabilities include, on a gross basis on both sides of the balance sheet, the unrealized gains and losses on marked-to-market bank derivatives positions (unless they meet certain criteria). These had previously been reported on a net basis on one side of the balance sheet. Beginning in November 2006 due to the fair value accounting standards the unrealized gains and losses will be reported in Accumulated Other Comprehensive Income.

Bankers’ acceptances are acceptances issued by a bank and not purchased by that same bank. If a bank purchases its own acceptances, these acceptances are included in business loans and are netted from the amount of bankers’ acceptances outstanding on both the asset and liability side of the balance sheet.

Liabilities of subsidiaries other than deposits include liabilities of subsidiaries other than those included in deposit liabilities, such as debentures.

Non-controlling interest in subsidiaries represents the amounts arising from the preparation of the balance sheet on a consolidated basis.

Chartered bank: Regional distribution of selected assets (formerly C5)

Source: Bank of Canada

Data cover total chartered bank selected assets and liabilities in Canadian dollars and foreign currency combined, at the end of each calendar quarter. The classes of assets and liabilities are reported as the total Canadian-dollar equivalent amounts.

Unless otherwise indicated, claims and liabilities of chartered banks are allocated on the basis of the location of the branch in which they are booked. Claims on and liabilities to non-residents are reported in Unallocated in Canada and/or international. Loans are reported gross of allowance for impairment, which is reported in Unallocated in Canada and/or international. Assets are reported gross of the allowance for impairment.

Provincial securities are distributed by province of issuing authority.

Loans to provinces and municipalities are classified by the province of the borrower.

Personal credit card loans are allocated by province of residence of the cardholder.

Residential and non-residential mortgages are allocated on the basis of the location of the mortgaged property.

Agricultural loans include loans to the Wheat Board and other grain dealers.

Chartered banks: Regional distribution of selected liabilities (formerly C6)

Source: Bank of Canada

Data cover total chartered bank selected assets and liabilities in Canadian dollars and foreign currency combined, at the end of each calendar quarter. The classes of assets and liabilities are reported as the total Canadian-dollar equivalent amounts.

Unless otherwise indicated, claims and liabilities of chartered banks are allocated on the basis of the location of the branch in which they are booked. Claims on and liabilities to non-residents are reported in Unallocated in Canada and/or international. Loans are reported gross of allowance for impairment, which is reported in Unallocated in Canada and/or international.

Deposits of provincial and municipal governments are classified by creditor province.

Deposits of municipal governments prior to March 2009, are included in Other deposits.

Deposits of Other include deposits of other residents not reported elsewhere.

Chartered banks: Classification of non-mortgage loans (formerly C7)

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Data cover chartered bank non-mortgage loans. The institutional sectors used for these data conform to the Statistics Canada definitions in the financial flow sector accounts. Data in this table are reported gross of allowance for impairment and will therefore differ from non-mortgage loans as presented in Chartered bank assets: Month-end (formerly C3). The detailed loan categories cover only non-mortgage loans to Canadian residents – loans to non-residents are shown separately in the table. Foreign currency loans have been converted into their Canadian dollar equivalents using the closing exchange rate prevailing on the last business day of the quarter.

The Canadian dollar portion of loans to Canadian individuals for non-business purposes generally conforms to the total personal loan series previously reported, except that loans are reported gross of allowance for impairment and also do not include loans to non-residents. Tax-sheltered plans include loans for registered savings plans such as RRSPs and RHOSPs. Marketable stocks and bonds are loans to individuals other than investment dealers and brokers which, when made, were fully secured by marketable stocks and bonds.

Loans to purchase consumer goods and other personal services include loans secured by marketable stocks and bonds that have been identified as being used to purchase consumer goods or services. Private passenger vehicles include all loans so identified whether or not they are secured by the purchased vehicle. Mobile homes include non-mortgage loans for all mobile homes as defined in the National Housing Act.

Credit cards include all outstanding balances under a credit card plan.

Deposit-taking financial institutions include Canadian chartered banks, Quebec savings banks, credit unions and caisses populaires, trust companies and mortgage loan companies. Other financial institutions include insurance companies, pension funds, consumer and business finance companies, investment companies, and public financial institutions.

Non-financial corporations and unincorporated businesses include all corporations, unincorporated businesses and unincorporated branches of foreign corporations operating in Canada (except financial institutions and government enterprises), and are classified using the 1980 Standard Industrial Classification published by Statistics Canada.

Agriculture includes agricultural industries as well as service industries incidental to agriculture, e.g., the veterinary and harvesting industries etc. Energy includes establishments primarily engaged in exploration and/or production of conventional petroleum and natural gas. Builders and developers include those engaged in either residential or non-residential building activities. Land developers are included under other construction. Multi-product conglomerates include those non-financial private corporations in which no one business constitutes more than 50 per cent of the corporation’s total activity. Unincorporated businesses include all businesses that are not incorporated under the law of Canada or a province and that are not unincorporated branches of foreign corporations.

Government enterprises include all Canadian and foreign public corporations in which a government holds at least 50 per cent of the voting stock and any subsidiaries of these companies. It also includes all governmental bodies that carry on a business and have their own borrowing authority.

Loans to institutions include loans to private non-profit institutions and to religious, health and educational institutions.

Loans to governments include loans to all governmental entities that do not carry on a business or do not have their own borrowing authority.

Loans to non-residents are loans to individuals, corporations or other organizations not ordinarily resident in Canada, but do not include lease financing receivables of non- residents or loans to and deposits with non-resident associated corporations, which are reported under leasing receivables.

Loans made under Government of Canada guaranteed loans schemes do not include funds advanced under the Small Business Development Bond or Small Business Bond programs, as these instruments are classified as securities on the books of the chartered banks.

Beginning December 1994, loans by securities subsidiaries exclude reverse repurchase agreements.

Beginning December 1994, loans to non-residents exclude reverse repurchase agreements.

Chartered banks: Classification of deposit liabilities (formerly K12)

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Chartered banks: Classification of deposit liabilities (formerly K12) presents a quarterly breakdown of chartered bank deposit liabilities booked worldwide, classified by type of instrument, by currency and by the institutional sector of the depositor. The institutional sectors are based on the definitions in the Statistics Canada publication Financial Flow Accounts, Catalogue 13-002. The deposit liability data are available from the first quarter of 1982 and correspond to data as reported by the banks on Schedule J under the Bank Act and published monthly in table Chartered bank liabilities and shareholders’ equity: Month-end (formerly C4) of the Bank of Canada Banking and Financial Statistics. Beginning with the fourth quarter of 1988, data include deposits booked at majority-owned investment dealer subsidiaries. Foreign currency deposits have been converted into Canadian dollar equivalents at the closing exchange rate on the last business day of the quarter.

Deposits of governments consist of deposits held by federal, provincial and municipal governments within Canada. Other financial institutions include deposit- taking institutions other than banks, insurance companies and pension funds, investment dealers, other private and public sector financial institutions. Beginning with the second quarter of 1994, deposit-taking institutions other than banks are included with deposit- taking institutions. Non-financial corporations comprise private and public sector non- financial corporations. Unincorporated businesses also include non-profit institutions such as religious, health and educational institutions as well as other private non-profit institutions. Deposits of individuals are deposits held by persons for non-business purposes, including registered home ownership savings plans (RHOSP) and registered retirement savings plans (RRSP). Deposits of non-resident banks include deposits of banks and official monetary institutions not resident in Canada. Other non-resident deposits comprise deposits of individuals, corporations and other organizations not resident in Canada. Bearer term notes and other negotiable notes are deposit instruments transferable to third parties.

Chartered bank assets and liabilities: Selected seasonally adjusted series (formerly C8)

Source: Bank of Canada

The data shown are monthly averages of Wednesdays prior to January 1994, and monthly averages of days thereafter. The series have been seasonally adjusted by means of X-13 ARIMA Seasonal Adjustment Program, which employs a ratio- to-moving-average technique on an observed data series that may be augmented by one year of ARIMA forecasted and backcasted data. Since the seasonal adjustment is recalculated when an additional 12 months of data become available, the series are subject to annual revisions. The individual series as well as the aggregates are adjusted independently; consequently, the seasonally adjusted components do not necessarily add to the totals. Data are available from July 1954. Users are referred to the notes to the tables in the December 1982 issue of the Review and in earlier issues for a description of the impact on the data of the 1967 Bank Act revisions.

Less liquid Canadian dollar assets consist principally of loans, mortgages, and non- Government of Canada securities.

Total loans do not include day-to-day loans, call loans, or residential mortgage loans.

General loans represent business and personal loans, loans to farmers, loans to religious, education, health and welfare institutions, and loans to grain dealers and to sales, finance and consumer loan companies. Loans to provinces and municipalities are not included.

Total personal loans include loans to purchase Canada Savings Bonds.

Chartered banks: Total foreign currency assets and liabilities (formerly C9)

Source: Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Data cover total foreign currency assets and liabilities of the chartered banks, whether booked in Canada or abroad. The figures include all gold transactions. Published data are available from January 1954.

Users are referred to the notes to the tables in the December 1982 issue of the Review and in earlier issues for a description of the impact on the data of the 1967 Bank Act revisions.

Assets do not include bank premises abroad. Call loans include day, call, and short loans to investment dealers and stockbrokers in foreign currencies. Other assets include gold coin and bullion, foreign notes and coin, and foreign currency items in transit (float). The last item is frequently a net liability.

Chartered banks: Total claims and liabilities booked worldwide vis-à-vis non-residents (formerly C10)

Source: Bank of Canada

Data cover foreign currency and Canadian currency assets and liabilities (excluding bullion and subordinated debt) on the books of the chartered banks, domestic and foreign branches, agencies and subsidiaries. Assets and liabilities have been classified according to the country of residence of the banks’ customers and by the nature of the banks’ customers (i.e., bank or non-bank). Residency of borrowers and depositors is determined according to the mailing address of the banks’ customers, unless the bank is aware that the residential status of the depositor or borrower is different from that indicated by the mailing address. Foreign branches or subsidiaries of Canadian corporations are classified as non-residents, while branches or subsidiaries of foreign corporations operating in Canada are classified as residents.

Data are reported on a full consolidated basis. However, prior to March 2006, assets and liabilities on the books of certain investment dealer subsidiaries of chartered banks were not included. As of March 2006, such claims represented approximately $70 billion of the total. Deposit liabilities on the books of these investment dealer subsidiaries represented less than $1 billion.

All claims are reported gross of allowance for impairment. Securities issued by, or loans to, official monetary institutions and non-bank holders of foreign exchange reserves are included as public claims. Prior to 1Q 2005 they were included as bank claims. “Local” activities are those claims or liabilities of an office of a bank made with residents of the country in which the office booking the claim or liability is located and which are denominated in the domestic currency of the country. All other claims or liabilities are defined as “non-local.” Prior to June 1983, bank claims and liabilities include only the “non-local” component.

Effective 4Q 2014, the changes in chartered banks’ reporting practices and systems, prompted by enhanced Guidelines for reporting of geographical positions, resulted in breaks in several existing time series.

Following are the countries that make up the “Other” component for each geographical grouping:

Other Western Europe: Andorra, Cyprus, Denmark, Faroe Islands, Finland, Gibraltar, Greece, Greenland, Guernsey, Iceland, Ireland, the Isle of Man, Jersey, Liechtenstein, Luxembourg, Malta, Monaco, Norway, Portugal, San Marino, Turkey and the Vatican.

Other Central Europe and Central Asia: Albania, Armenia, Azerbaijan, Belarus, Bosnia-Herzcegovina, Bulgaria, Croatia, Czechoslovakia (until 4Q 2004), Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Romania, Serbia (until 4Q 2006), and Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan and Yugoslavia (until 4Q 2004).

Other East Asia and the Pacific: Afghanistan, American Samoa, Antarctica, Bangladesh, Kingdom of Bhutan, British Indian Ocean Territory, British Solomon Islands, Brunei, Cambodia, Cocos (Keeling) Islands, Cook Islands, Fiji, French Polynesia, Guam, Indonesia, Kiribati (Canton and Enderbury Islands, Gilbert Island, Phoenix Islands, Line Islands), Democratic People’s Republic of Korea, Laos, Macao SAR, Republic of Maldives, Marshall Islands, Micronesia, Midway Island, Mongolia, Myanmar (formerly Burma), Nauru, Kingdom of Nepal, New Caledonia, Niue Island, Norfolk Island, Pacific Islands (Trust Territory), Pakistan, Palau, Papua New Guinea, Pitcairn Island, Samoa, Solomon Islands, Sri Lanka, Timor Leste, Tokelau or Union Islands, Tonga, miscellaneous U.S. territories, Vietnam, Wake Island, and Wallis and Futuna Islands.

Other Latin America and Caribbean: Belize, Bonaire, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Falkland Islands, French Guiana, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama Canal Zone, Paraguay, Puerto Rico, St. Barthelemy and St. Martin (French), St. Eustatius and Saba, St. Pierre and Miquelon, Suriname, Uruguay and U.S. Virgin Islands.

Other North Africa and Middle East: Abu Dhabi, Dubai, Egypt, Iran, Iraq, Israel, Hashemite Kingdom of Jordan, Arab Republic of Libya, Morocco, Oman, Palestinian Territory, Qatar, St. Helena, Syria, Tunisia, United Arab Emirates, Western Sahara and Republic of Yemen.

Other sub-Saharan Africa: Angola, Benin (formerly Dahomey), Botswana, Burkina Faso (formerly Upper Volta), Burundi, Cameroon Republic, Cape Verde Islands, Central African Republic, Chad, Comoros Islands, Democratic Republic of Congo (formerly Zaire), People’s Republic of Congo, Côte d’Ivoire, Djibouti (formerly French Afars & Issas), Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea- Bissau, Kenya, Lesotho, Madagascar (Malagasy Republic), Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Reunion Islands, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Sudan, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia and Zimbabwe.

Other off-shore banking centres: Anguilla, Antigua and Barbuda, Aruba, Bahrain, British Virgin Islands, Curacao and Sint Maarten, Dominica, Grenada, Guadeloupe, Lebanon, Liberia, Martinique, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent, Turks and Caicos Islands and Vanuatu (formerly New Hebrides).

Unallocated: Christmas Island and Johnston Island, African Development Bank, Asian Development Bank, Bank for International Settlements, Caribbean Development Bank, East Africa Development Bank, European Central Bank, European Economic Community, Inter-American Development Bank, international financial agencies, other financial agencies, shipping loans, Tuvalu, U.N. agencies and other unallocated.

Funds advanced and outstanding balances for new and existing household lending by chartered banks

Source: Bank of Canada

The data shown is to provide information on the funds advanced and outstanding balances vis-à-vis new and existing loans, booked in Canada, in Canadian dollars only, to Canadian households and business sectors by institutions. Reporting coverage encompasses banks and foreign bank branches.

Information provided on mortgages and consumer credit tables represent credit extended to individuals for non-business purposes. These loans are those used to finance the acquisition of housing, consumer goods and services, including the acquisition of securities.

The funds advanced and outstanding balance section classify amounts across terms based on the term set at loan origination.

Funds advanced represents the cumulative total of new credit extended, new draws on existing credit facilities, mortgage or term-loan renewals and refinancing for a given month.

Outstanding balances are reported as month-end accounting book values, gross of allowances for expected credit losses. Outstanding balances for credit card lending is reported based on the closest billing cycle period.

Data collection on outstanding balances, auto-loans, open and closed variable rate residential mortgages began in July 2016.

For precise definitions of loan categories and general detail, please visit the Report on New and Existing Lending (A4) instructions on the OSFI website.

Interest rates charged for new and existing household lending by chartered banks

Source: Bank of Canada

The data shown is to provide information on the interest rates charged vis-à-vis new and existing loans, booked in Canada, in Canadian dollars only, to Canadian households and business sectors by institutions. Reporting coverage encompasses banks and foreign bank branches.

Information provided on mortgages and consumer credit tables represent credit extended to individuals for non-business purposes. These loans are those used to finance the acquisition of housing, consumer goods and services, including the acquisition of securities.

The funds advanced and outstanding balance section classify amounts across terms based on the term set at loan origination.

Interest-rates are calculated by a volume-weighted average, cross-sectioned on reporting institutions for a given month. The volume-weighted average interest rate for a given loan instrument in a specific month, is the sum of all reporting institutions’ weights multiplied by the reporting institutions’ interest rate. Weights are measured using a reporting institution’s funds advanced or outstanding balance for a loan instrument of a given month relative to the cumulative total funds advanced or outstanding balance of all reporting institutions for the reference loan instrument and month. A sample calculation for a loan instrument in a specific month is displayed below.

$$R=\sum_{i=1}^{N}w_{i}r_{i} \\R = weighted\,average\,interest\,rate \\w_{i}=weight\,of\,given\,respondent \\r_{i}=interest\,rate\,of\,given\,respondent \\N=Set\,of\,respondents $$

Funds advanced represents the cumulative total of new credit extended, new draws on existing credit facilities, mortgage or term-loan renewals and refinancing for a given month.

Outstanding balances are reported as month-end accounting book values, gross of allowances for expected credit losses. Outstanding balances for credit card lending is reported based on the closest billing cycle period.

Data collection on outstanding balances, auto-loans, open and closed variable rate residential mortgages began in July 2016.

For precise definitions of loan categories and general detail, please visit the Report on New and Existing Lending (A4) instructions on the OSFI website.

Interest rates posted for selected products by the major chartered banks

Source: Bank of Canada

The data shown is to provide information on the weekly posted interest rates offered by the six major chartered banks in Canada. The posted rates cover prime rate, conventional mortgages, guaranteed investment certificates, personal, daily interest savings, and non-chequable savings deposits.

All rates presented in this table are the most typical of those offered by the six major chartered banks.

The methodology for calculating the typical rate is based on the statistical mode of the rates posted by the six largest banks, with the following rules:

  1. In the case of no mode, select the rate closest to the simple 6-bank average.
  2. In the case of multiple modes, select the mode closest to the simple 6-bank average.
  3. In the case of two modes at equal distance from the simple 6-bank average, select the mode whose banks have the largest value of assets1 booked in CAD.

The prime rate, or prime lending rate, is the interest rate a financial institution uses as a base to determine interest rates for loan products. Each financial institution sets its own prime rate, as a function of its cost of funding, which, in turn, is influenced by the target for the overnight rate set by the Bank of Canada.

The monthly rates were calculated by using the rate for the last Wednesday of the month.

  1. 1. Data source: latest M4 return data released on OSFI’s website.[]