{"id":195163,"date":"2026-09-03T22:34:18","date_gmt":"2026-09-03T22:34:18","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/195163\/"},"modified":"2026-09-03T22:34:18","modified_gmt":"2026-09-03T22:34:18","slug":"us-banks-can-operate-in-canada-despite-trumps-claim-otherwise","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/195163\/","title":{"rendered":"US banks can operate in Canada, despite Trump’s claim otherwise"},"content":{"rendered":"

Asked about the trade war<\/a> with Canada on Wednesday, President Donald Trump falsely claimed that U.S. banks are not allowed to do business with its neighbor to the north.<\/p>\n

The allegation came during a meeting with U.S. travel executives in the Oval Office, after a reporter asked Trump whether there are plans for renewed trade talks between the two countries.<\/p>\n

Experts say that although they may face restrictions, U.S. banks are not forbidden from operating in Canada.<\/p>\n

Here\u2019s a closer look at the facts.<\/p>\n

TRUMP: \u201cThey have their banks here, Bank of Canada, all of their big banks \u2014 big, beautiful banks. I think they have six or seven major banks here. We don\u2019t have our banks there. You know why? They don\u2019t allow it.\u201d<\/p>\n

THE FACTS: There are currently 15 U.S.-based banks operating out of Canada, either as branches or subsidiaries, according to a spokesperson for the Canadian Bankers Association. Certain restrictions can make it difficult for U.S. banks to compete north of the border, experts say, but they are free to enter the market. There are eight Canadian banks operating in the U.S., according to the Federal Reserve\u2019s most recent data<\/a>. The Bank of Canada is not one of them \u2014 it is Canada\u2019s central bank, equivalent to the Federal Reserve in the U.S., not a commercial enterprise.<\/p>\n

\u201cI think some confusion arises from the differences between the U.S. and Canadian regulatory systems,\u201d said James Thompson, a professor of finance at the University of Waterloo in Canada\u2019s Ontario province. \u201cU.S. banks are certainly permitted to operate in Canada, but how they choose to enter the Canadian market affects what they can do.\u201d<\/p>\n

There are three categories of banks in Canada \u2014 Schedule I<\/a>, Schedule II<\/a> and Schedule III<\/a>. Canadian-owned banks are Schedule I. There are six major Schedule I banks<\/a> whose combined assets eclipse those of the 28 smaller banks in the country.<\/p>\n

Foreign entities can choose to operate as either Schedule II or Schedule III banks. Schedule II banks are foreign-owned subsidiaries incorporated in Canada that fall under essentially the same banking framework as banks owned domestically. Schedule III banks are branches of foreign banks that are not incorporated in Canada and therefore face regulatory restrictions such as high deposit minimums. Most U.S.-owned banks operate in Canada as Schedule III institutions.<\/p>\n

Nathalie Bergeron, a spokesperson for the Canadian Bankers Association, said that U.S.-based bank branches and subsidiaries operating in Canada have combined assets of approximately $124.6 billion in Canadian dollars (US$904 million) \u2014 more than half of all assets held by foreign bank subsidiaries and branches.<\/p>\n

\u201cThese banks specialize in a range of financial services, including corporate and commercial lending, treasury services, credit card products, investment banking and mortgage financing,\u201d she said. \u201cThey serve not only customers with cross-border business activities, but also Canada\u2019s domestic retail market.\u201d<\/p>\n

Among the U.S. banks doing business in Canada are J.P. Morgan Chase Bank, Citibank, Bank of America, Capital One, and Wells Fargo.<\/p>\n

Both Schedule II and Schedule III banks face restrictions due to Canadian banking regulations. Jeremy Kronick, a financial and monetary policy expert who is president and CEO of the Canadian C.D. Howe Institute think tank, explained that Schedule III banks cannot accept deposits below $150,000 (US$72,529). This means most people won\u2019t be able to use them as their retail bank. He added that since Schedule II banks are separate legal entities from their foreign parent company, they need their own local capital and liquidity structures \u2014 an inefficient option from the bank\u2019s perspective.<\/p>\n

Such restrictions may be the reason the majority of U.S.-owned banks choose not to do business over the border. There are more than 3,700 domestically-owned commercial banks in the U.S., according to the Federal Reserve<\/a>, compared to the 15 with a presence in Canada.<\/p>\n

\u201cCanada is a relatively small market, and incumbent Canadian banks are already very large institutions with established brands, extensive branch networks and longstanding customer relationships,\u201d said Thompson. \u201cFor a U.S. bank contemplating entry, building the infrastructure necessary to compete for Canadian retail customers would be expensive, while initially capturing only a small share of an already relatively small market.\u201d<\/p>\n

The White House did not immediately respond to a request for comment.<\/p>\n

___<\/p>\n

Find AP Fact Checks here: https:\/\/apnews.com\/APFactCheck<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Asked about the trade war with Canada on Wednesday, President Donald Trump falsely claimed that U.S. banks are…\n","protected":false},"author":2,"featured_media":195164,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[61166,525,17,61163,162,56664,1746,592,61162,37713,27961,61165,290,32880,3942,5996,61164,218],"class_list":["post-195163","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-bank-of-america-corp","tag-business","tag-canada","tag-capital-one-financial-corp","tag-donald-trump","tag-federal-reserve-system","tag-financial-services","tag-general-news","tag-james-thompson","tag-jeremy-kronick","tag-jpmorgan-chase-co","tag-nathalie-bergeron","tag-national","tag-trump-hub","tag-u-s-news","tag-washington-news","tag-wells-fargo-co","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/195163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=195163"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/195163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/195164"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=195163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=195163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=195163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}