Jean-Robert, keep your eye on this possible emerging CGI opportunity. As you know, CGI already serves Republic National, ING Groep, Honk Kong Bank while (new) brother BCE Emergis has relationships with Nations Bank, BankAmerica, and others around the world.
From today's Financial Post
New banking laws to stop short of open market for foreign banks
By ALAN TOULIN
New legislation expanding the role of foreign banks is expected to be introduced in the House of Commons on Feb. 11 instead of after the federal budget later in the month. The proposed bill would allow foreign banks to compete in the corporate market against the big Canadian banks, but Ottawa still plans to restrict foreign banks in pursuing consumer banking.
Foreign banks will be allowed to operate as branches of their parents, which gives them access to their parents' financial resources when it comes to commercial lending. But, in retail banking, the foreign banks won't be allowed to take any deposits under $150,000.
Gennaro Stammati, Banca Commerciale Italiana president and chief executive, believes there is a climate for opening up the Canadian market in the wake of the bank merger debate. A number of reports associated with the Canadian mega-mergers called for greater competition in the financial services industry.
"All the reports . . . talked about opening up the border to a new reality. There is not any longer a banking environment here -- now there is a financial market," Mr. Stammati said. He is chairman of the group of 42 foreign banks operating in Canada.
Jim Peterson, Secretary of State, International Financial Institutions, will present MPs with a bill that falls short of the full opening of the industry desired by foreign banks. The bill is aimed at meeting Canada's trade obligations under the World Trade Organization.
Sources indicate the legislation will not set out a path or schedule of steps that will ultimately open the Canadian market to foreign banks. The federal Finance Department is preparing an overall reform of the financial sector and doesn't want to get ahead of itself, sources said.
Still, foreign banks are keen on getting permission to operate as branches of their parent banks, instead of as subsidiary corporations. The proposed change will allow foreign banks to make lending decisions based on the capital of their parents. As subsidiaries, they now must have a separate base of capital in Canada and their lending is geared to that investment.
Youssef Nasr, president and chief executive officer of Hong Kong Bank of Canada, said the change in status to a branch from a subsidiary will expand the bank's business activities.
"Our treasury and corporate banking activities have been constrained in the past by conducting them against the capital base of our bank in Canada rather than on our global capital base," he said. But consumers won't see much change because of the restrictions on deposit-taking, Mr. Nasr said.
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