Canadian Banker Urges Lawmakers To Allow Mergers Of Banks And Insurers
The Canadian government should drop its ban on mergers between national banks and insurance companies, a Canadian bank executive recently told a committee of lawmakers in Ottawa.
“It would be timely and helpful if instead of focusing only on the five major banks you were to broaden your scope to encompass the five major banks and the two widely held life insurance companies,” said Ed Clark, president and CEO of Toronto-Dominion Bank Financial Group, in testimony before the House of Commons finance committee.
The insurance carriers Clark was referring to were Manulife Financial Corp. and Sun Life Financial Services of Canada Inc., both of Toronto.
The committee has been holding hearings on loosening restrictions on bank-bank mergers, now tightly controlled under Canadian law. Insurer-insurer mergers are also restricted, while bank-insurer mergers are forbidden altogether in Canada.