American banks have been operating in Canada for many years.
U.S. President Donald Trump said on Monday that U.S. banks are not allowed to operate in Canada, echoing an earlier statement he'd made on his Truth Social platform — but the claim is false.
"American banks are not allowed to do business in Canada. Can you believe that?" he said to a room of reporters. Trump has mentioned Canada's banking sector several times recently in relation to trade tensions, suggesting that he has another bone to pick as a tariff dispute simmers between the two countries.
Several U.S. financial institutions have operations in Canada. They fall under the Schedule 2 category (foreign-owned banks with Canadian subsidiaries), and they include JPMorganChase, which has about 600 employees on this side of the border, and Citibank, which has operated in Canada for more than a century.
So what might the U.S. president be referring to?
"It's somewhat exaggerated. [U.S.] banks can operate in Canada, but if they really want to be major players, it's a little more difficult," said Lawrence Kryzanowski, a professor of finance at Concordia University's John Molson School of Business.
Foreign banks might not want to move into Canada because of tough competition. Canada's banking industry is highly concentrated, with its big six domestic banks — Royal Bank, Bank of...
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