President Donald Trump’s false claim that Canada prohibits US banks from operating within its borders has been debunked by various sources, including CNN. Despite Trump’s assertion, American banks have a significant presence in Canada, with 16 US-based bank subsidiaries and branches holding around C$113 billion in assets and comprising half of all foreign bank assets in the country. These banks, such as Bank of America, Wells Fargo, and Citigroup, offer a range of financial services to businesses and affluent individuals.

While Canada does tightly regulate its banking sector and requires government approvals for foreign-owned banks to operate, US banks have been established in Canada for over a century. They can choose to operate as subsidiaries or branches, each option having its own regulatory implications. Subsidiaries are subject to the same regulations as domestic banks, while branches have restrictions on accepting deposits lower than $150,000 CAD but can engage in profitable activities like corporate lending and investment banking.

Experts like Bryce Tingle and Jeremy Kronick emphasize that foreign banks, including those from the US, have the opportunity to operate in Canada but must navigate regulatory requirements and trade-offs between subsidiary and branch options. While some restrictions may impact full competition with Canadian banks, the notion that Canada outright prohibits US banks from conducting business is unfounded, as clarified by Kronick. Overall, US banks have found ways to thrive in the Canadian market, offering a diverse range of financial services beyond traditional retail operations.