, would eliminate one of Royal Bank’s few rivals but it wouldn’t make the lack of competition in banking substantially worse.
Instead, under Canada’s inadequate competition law, the federal watchdog is able to do little more than shrug at further consolidation in an already heavily consolidated industry. The problem, as, is the Competition Act, not the bureau. Ottawa is reviewing the law, which dates back to the 1980s when a bigger-is-better philosophy reigned. A potential overhaul is pending, changes this space strongly supports.
The Competition Bureau’s review suggested that HSBC Canada didn’t have an overly large impact on the banking industry. But it had geographic strength in Vancouver and Toronto and booked rapid growth in residential mortgages by offering attractive rates. Its absence, while not a disaster, is a loss for competition.