Loss of HSBC Canada as competitor in mortgage space could raise costs for everyone, industry watchers say

RBC to purchase HSBC’s Canadian business for $13.5B. It’s worth noting that HSBC was notorious for undercutting big bank mortgage rates.If, as expected, HSBC’s business lines are rolled into RBC’s when the deal closes — the target is late next year — such competition will be difficult to replicate.

But that analysis omits a couple of key facts, in McLister’s view. “HSBC is and has been the only competitor with low enough funding costs and big enough scale to consistently challenge the Big 6,” he said.HSBC offers are “widely used as bargaining chips” to negotiate with other banks. The Canadian unit’s contribution to the parent company came largely from its commercial banking, not its retail operations. It represented just three per cent of global customer accounts.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

HSBC eyes bumper dividend from $10 bln sale of Canada business to RBCHSBC has agreed to sell its business in Canada to Royal Bank of Canada for C$13.5 billion ($10 billion) in cash, paving the way for a potential bumper payout for shareholders later down the line. Chinese bank
Source: Reuters - 🏆 2. / 97 Read more »