They didn’t have much of a housing bubble up north, and Canadian regulations are tighter than ours, so their banks haven’t been crushed.
So Canadian PM Sephen Harper says it’s time for Canadian banks to take advantage of the weakness elsewhere and expand internationally.
He told FT that banks such as Royal Bank of Canada (RY), Toronto Dominion (TD) and Bank of Montreal (BMO) could help lead a global wave of consolidation, and that he hoped they used this crisis to build the brand.
The timing sounds right, but we hope Canada doesn’t come to regret this expansionist attitude. As Iceland and London are showing, scary things happen when the size of you’re banking system gets too big relative to GDP. Despite the temptation, they might prefer in the long run to keep their sleepy, domestic banking business and the stability that comes with it.