On: The Canadian Solution

[gaius]

The Canadian regulators are very reluctant to let Canadian banks or indeed any financial services firms be acquired by foreigners. Monopolies (or oligarchies) cannot exist without government support.

Not that they're in such great shape now, but Joe (or Jacques) Canadian would probably be a lot better off if RBS, HSBC, Citibank and Santander had been allowed to roll up the regional banks.,

[barrkel → gaius]

What? Monopolies can very well exist without government support.

Unless you're making the facile observation that government support includes not breaking up monopolies, there are natural monopolies that require no government support - namely, industries with very high fixed costs and little or nothing in the way of marginal costs. Consider in particular utilities which maintain expensive distribution networks.

[gaius → barrkel]

Not in banking they can't!

[chollida1 → gaius]

Can you give an example of what you mean by a regional bank?

I only know of the big 6 national banks and the credit unions.

[r7000 → chollida1]

National Bank (mostly Quebec)

Laurentian Bank (Quebec)

Canadian Western bank (Alberta, the West)

Vancity/Citizens (organized a bank outside of B.C.)

[jacquesm → r7000]

I've never even seen any of these, the only ones that I have seen are the 5 majors and the credit unions (which are good for very local affairs only).

How big are these compared to the 5 majors ?

[gaius → chollida1]

As opposed to say HSBC which is a global bank.

[pedalpete → gaius]

HSBC operates in Canada.

[gaius → pedalpete]

I know, but they aren't acquiring Canadian banks willy-nilly - they can't.