The Department of Finance Canada, in its second consultation paper, requested comments regarding nonbanks' use of the terms "bank" or "banking."
The agency acknowledged the importance of limiting the terminology to institutions subject to federal banking protections and obligations. But it also noted provincial credit unions' argument that they would be competitively disadvantaged if forced to say "online transaction accounts" or "providing personal financial services" in reference to their products and services. Credit unions have further argued that they make appropriate disclosures to ensure customers know their institutions are not banks.
In line with the request for public comment, the Office of the Superintendent of Financial Institutions has suspended related compliance expectations issued June 30.
Comments on the Finance Department's paper must be submitted by Sept. 29.