Trump's Claim About US Banks in Canada is a False Statement

President Donald Trump recently claimed that U.S. banks cannot operate in Canada, but experts say this is not true.

According to James Thompson, a professor of finance at the University of Waterloo, there are currently 15 U.S.-based banks operating out of Canada, either as branches or subsidiaries.

The Canadian Bankers Association reports that these banks have combined assets of approximately $124.6 billion in Canadian dollars ($904 million USD), more than half of all assets held by foreign bank subsidiaries and branches.

Thompson explained that U.S. banks can operate in Canada, but face restrictions due to Canadian banking regulations. He noted that Schedule III banks cannot accept deposits below $150,000 CAD ($72,529 USD) and must have their own local capital and liquidity structures, making it an inefficient option for the bank.

Thompson also mentioned that building infrastructure to compete with established Canadian banks would be expensive, while capturing only a small share of the relatively small market is challenging.