Carney Government Targets Banking Competition in Budget

Canada’s government is taking aim at competition in the financial sector, pledging to tackle fees, make it easier for consumers to switch banks and reduce regulatory burdens for smaller lenders.

Ottawa described the proposed changes, published in Tuesday’s federal budget, as the first phase of a plan to lower everyday banking costs for Canadians and spur more innovation in the industry, which is dominated by a handful of big lenders.

The measures include a promise to ban fees for transferring investment accounts and to shed more light on foreign-exchange and cross-border money transfer levies. The government has also asked the ...