Coordinated, forward-looking approach urgently needed in the face of rising trade tensions with the U.S., says Canadian Bankers Association
In light of recent tensions over Canada-U.S. trade policies, the Canadian Bankers Association (CBA) is emphasizing the importance of strong economic foundations and collaboration between the two countries. The conversation has been amplified by U.S. President Donald Trump’s claim that Canada does not allow U.S. banks to operate within its borders—an assertion that the CBA quickly refuted.
"He was plainly wrong," said Alex Ciappara, head economist at the CBA. "We have 16 U.S. banks operating in this country. They have about $113 billion in assets and amount to about half of all foreign bank assets in this country." The CBA underscored the integral role these financial institutions play in retail, commercial and corporate finance, as well as their contributions to Canada’s economic stability.
The debate over trade policies comes at a critical time as Canada grapples with economic challenges and the need to strengthen its competitive position globally. The CBA recently released its Blueprint for Canadian Prosperity, a roadmap designed to foster economic resilience and growth. The plan includes 13 key recommendations covering issues such as infrastructure development, public-private partnerships, small business growth, and regulatory competitiveness.
“Canada must embrace a plan that will unlock our growing potential and establish a strong and resilient economic foundation. As a mid-sized, developed country on pace to surpass the population of many of its peers within our lifetime, we must ensure we are effectively positioned to take advantage of our potential. To get us back on track, we have developed that plan, a blueprint for Canadians’ prosperity and a thriving economy,” the Blueprint states.
“To seize the opportunity, we must act with urgency and purpose. Canada must take a comprehensive, coordinated approach to addressing these challenges with forward-looking, practical and effective public policies. Governments and the private sector must work together to make certain that the most effective policies are in place to create high-paying jobs for workers and growth that supports all Canadians.”
“Canada must embrace a plan that will unlock our growing potential and establish a strong and resilient economic foundation. As a mid-sized, developed country on pace to surpass the population of many of its peers within our lifetime, we must ensure we are effectively positioned to take advantage of our potential.”
Blueprint for Canadian Prosperity, Canadian Bankers Association
"There is a growing consensus across this country that we have an urgent need to generate high-quality jobs, unlock the potential of workers, and build major projects that will serve Canadians now and in the future," Ciappara said. "The blueprint is our contribution to the public policy debate, offering clear, non-partisan recommendations for policymakers."
The CBA also addressed the urgency of economic reforms, particularly in response to the recent tariff threats from the U.S. that have underscored Canada’s reliance on the U.S. market. "I think I've heard more about building large infrastructure projects, removing interprovincial trade barriers, and diversifying international markets in the last week than I have at any point in my entire career," he said. "The conversation is happening. Now, we need to turn talk into action."
He said there is an opportunity to transform the current trade landscape into something beneficial for Canadians, forcing the country to confront complacency on economic growth and productivity.
“The federal government can take leadership to address those issues that are in their jurisdiction, and hold those actions up as examples to say to the provinces and businesses that we're serious about Canada's prosperity and potentially mobilize provinces to do their part in terms of the recommendations that entail provincial cooperation, like building big infrastructure projects including across provincial borders, working together on the anti-scam alliance or tearing down interprovincial trade barriers,” he said.
A key element of the CBA’s advocacy is ensuring a strong and stable banking system that supports economic growth. "Banks pretty much touch on every aspect of Canadians' lives—helping them save, borrow, start businesses, and plan for the future," he said. "If Canada prospers, Canadian banks prosper. And if our banks are strong, they can help drive economic stability and opportunity across the country."
The CBA points to the resiliency of Canada’s banking sector as a model for economic policy. Unlike the U.S., where regional banking failures have created instability, Canada’s federally regulated banking system allows institutions to operate nationally, across provincial borders in order to diversify their risk.
"Because of its national orientation, the banking sector has been able to withstand economic downturns while continuing to finance growth," Ciappara said. "Other industries could benefit from the lessons learned in banking—especially when it comes to breaking down interprovincial trade barriers and completing major infrastructure projects."
Beyond economic policy, the CBA is also taking action to protect consumers from financial fraud. They convened an anti-scam alliance last July, bringing together representatives from banking, technology, telecommunications, law enforcement and governments to develop a made-in-Canada action plan. "Frauds and scams are an ever-evolving threat, and it's shocking how many Canadians are affected — 75 per cent report encountering a scam at least once a month, and financial losses could be as high as $11 billion annually," Ciappara said.
The CBA is urging the government to move beyond discussions and take decisive action to implement its recommendations. "We need to stop with the talk and the studies. We need to get on with taking action," Ciappara said. "A national market benefits everyone. The banking sector has thrived under a unified regulatory framework, and other industries can follow suit if we remove unnecessary barriers and prioritize economic resilience."
“Other industries could benefit from the lessons learned in banking—especially when it comes to breaking down interprovincial trade barriers and completing major infrastructure projects.”
~ Alex Ciappara, Head Economist, Canadian Bankers Association
With the release of the Blueprint for Canadian Prosperity and its ongoing advocacy efforts, the CBA remains committed to ensuring that Canada’s economy remains strong, competitive, and well-equipped to navigate future challenges. It’s why Ciappara said it was important for the CBA to be a Coalition member.
“I think our organizations are very similar. We're focused on building a more prosperous future for our country, and I think our objectives align well,” he said. “It's important that we share common goals and amplify each other's efforts.”
He noted that demonstrating this unified voice on productivity goes a long way to gaining political traction. “We want to make sure that all levels of government are enacting policies that help Canadians live better and win globally, while making sustainable growth a priority. That's the objective, and we need to communicate that to governments.”
As policymakers consider next steps, the association continues to push for reforms that will benefit businesses, workers, and consumers alike.
“Banks in Canada will continue to work with Canadians and governments across the country to build on our current foundation and position Canada for future success,” the Blueprint states. “A cornerstone component for that strong foundation of the future, is a sound, competitive banking system that both enables and protects Canadians' financial future. With all of Canada’s natural and inherited assets and the benefit of one of the most accessible and stable banking sectors in the world, we see the opportunity to build that future.”
