U.S. President Donald Trump’s assertion that American banks are barred from operating in Canada has been refuted by financial experts and industry representatives. Despite his statement on Truth Social claiming that “Canada doesn’t even allow U.S. banks to open or do business there,” data from the Canadian Bankers Association (CBA) shows otherwise.
According to the CBA, U.S. banks maintain a strong presence in Canada, accounting for nearly half of all foreign banking assets in the country. “There are 16 U.S.-based bank subsidiaries and branches currently operating in Canada, holding around C$113 billion in assets,” the association stated. These institutions offer a broad range of financial services, including corporate and commercial lending, investment banking, mortgage financing, and credit card products, serving both cross-border and domestic retail clients.
Laurence Booth, a finance professor at the University of Toronto’s Rotman School of Management, confirmed that U.S. banks have long been permitted to operate in Canada under the federal Bank Act. The legislation categorizes banks into three groups: Schedule I, consisting of Canadian-owned institutions; Schedule II, which includes subsidiaries of foreign banks that can accept deposits; and Schedule III, which covers foreign bank branches primarily engaged in corporate services and wealth management.
Currently, 15 foreign-owned banks operate under Schedule II, including three U.S.-based institutions. Many others, such as Citibank, J.P. Morgan, and Capital One, fall under Schedule III, where they engage in corporate finance and investment services. Booth noted that Canadian financial regulators have even encouraged U.S. banks to expand their presence in the country to enhance competition.
The Canadian Bankers Association, which represents over 60 domestic and foreign banks in Canada, provided a list of major U.S. financial institutions operating within the country, including Wells Fargo and Comerica Bank. The reality of the financial landscape contradicts Trump’s statement, underscoring the active role American banks play in Canada’s economy.
