Since the economic downturn, the Canadian government has placed the health of small and medium-sized businesses as a top priority for Canadian banks. This is an advantageous for business account holders since it all but guarantees competitive rates and targeted programs. As a result of this declaration, the best business bank accounts in Canada center on small and medium-sized enterprises, or what is known as S.M.E.s.
Canadian National Banking System
Canadian banks are among the top financial institutions in the world and have shown an incredible resiliency that few countries can surpass during the recent economic hardships. Overall, the banking system is anchored by traditional institutions that offer unique credit decisions on a case-by-case basis. This enables banks to provide lines of credit to businesses that have the ability to repay these loans and thus avoid the credit lump pitfalls that have plagued international banks. During td mortgage rates a recent survey, over eighty percent of respondents accredit cautious lending as the key reason Canadian banks have remained robust during the latest world-wide recession.
Streamlined Regulatory System
Unlike the United States, Canada has optimized the use of two primary regulators: the Office of the Superintendent of Financial Institutions (O.S.F.I.) and the Financial Consumer Agency of Canada (F.C.A.C.). The O.S.F.I. deals with prudential regulation while the F.C.A.C. handles consumer affairs. The Canadian Bank Act is reviewed every five years to ensure regulatory structures are in-line with current industrial needs. Because of the above mentioned structures, Canada is widely known to have a sound regulatory system that subjects financial institutions to certain guidelines in order to maintain the veracity of its financial system.
Well-Capitalized Financial Institutions and Stable Lending Habits
The banks in Canada are among the elite few that can continue lending in economic downturns and still maintain a cushion to counter against loan losses; ergo these institutions hold some of the best business bank accounts Canada has to offer.
Since Canada does not have high-risk mortgage products, such as adjustable rates and interest-only payments, it lacks the mortgage crisis that has plagued many other civilized countries.
Canadian banks are committed to providing excellent credit services when other lenders have been found wanting.
So, What Does all this Mean?
Since Canada has shown its capacity to encourage small business growth and maintain loyal business customers, it is safe to say that its extended line of credit has been nothing but beneficial to Canadian S.M.E.s. Banks and other financial institutions are held to a high standard of excellence that keeps them direct and virtuous with their customers. Financial institutions with strong roots in established lending practices have the capability to strengthen the local economies while taking the occasional loss from a bad investment. The sum total of this entire passage is that the best business bank accounts in Canada are homegrown and not of an international origin. Extraordinary financial guidelines and spot-on moral compass aide Canadian banks in offering the most advantageous products and services to its business customers.