Today, the Department of Finance is launching consultations to help inform the Minister of Finance's decision regarding National Bank of Canada's proposed acquisition of Canadian Western Bank, which was first announced on June 11, 2024.
As stipulated in the Bank Act, all acquisitions and amalgamations in Canada's banking sector are subject to the approval of the Minister of Finance, who must take into account all matters she considers relevant. These may include:
- The rights and interests of consumers, business customers, and employees;
- The impact of the transaction on the level of competition in the sector;
- The consequences of the stability and integrity of the financial sector and public confidence in it;
- Whether the acquisition is in the best interests of the financial system; and,
- Whether the acquisition is in the best interests of those living in an affected region.
The proposed acquisition would require an additional approval from the Minister of Finance to recategorize Canadian Western Bank and exempt it from the requirement that its shares be widely held. In addition to the regulatory review by the Office of the Superintendent of Financial Institutions and by the Competition Bureau, which concluded in September 2024, comments received during this consultation process
