RE:Bank stocks shineTrudeau/ Freeland regime taking aim at CAD banks, and making it more expensive for them to operate.
The Globe and Mail reports in its Monday edition that Canada's biggest banks are facing a myriad of new taxes and costly regulatory changes, and analysts say these pressures are among the biggest threats to already squeezed profits in the sector. The Globe's Stefanie Marotta writes that the country's banking watchdog, the Office of the Superintendent of Financial Institutions, has tightened capital requirements and bolstered its tools to safeguard the industry from rising risks. In its 2023 budget, Ottawa tacked on another tax change targeted at financial institutions and said it would also crack down on bank fees. Meanwhile, fraud and accounting oversight in the industry is shifting. The Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) is increasing enforcement of compliance issues ahead of a coming review of Canada's anti-money-laundering practices. The federal financial intelligence agency has already levied fines on Royal Bank of Canada and Canadian Imperial Bank of Commerce for various violations. In addition, global reforms known as Basel III are requiring banks to carry more capital and limit risks. The changes are material and are hitting the Big Six banks' bottom lines.