October 20, 2023 – Conservative Party leader Pierre Poilievre urging Deputy Prime Minister Chrystia Freeland to block the proposed takeover of HSBC Canada by RBC is a positive development for Canadians and competition. Poilievre correctly notes that allowing the transaction to proceed would reduce competition in the banking sector as Canadians struggle under a housing affordability crisis. With less competition, homeowners will have fewer options to offset the cost of rising interest rates as mortgage payments hit record levels.
“We are glad to see the Conservative Party taking a strong stand for Canadians in their opposition to RBC’s takeover of HSBC Canada,” said Keldon Bester, Executive Director of the Canadian Anti-Monopoly Project. “The takeover of HSBC Canada would further concentrate Canada’s banking sector and remove a competitive option in key markets like Vancouver and Toronto. Deputy Prime Minister Freeland has an opportunity to protect Canadian homeowners when they need it most, and we strongly encourage her to take it.”
As an aggressive competitor in the mortgage market, HSBC Canada provides homeowners a choice that will only become more important as more Canadians are exposed to the cost of rising interest rates. CAMP opposes the acquisition of HSBC Canada by RBC on the grounds that it will reduce competition in Canada’s banking sector and increase the cost of housing for Canadians. Like all bank mergers, the authority for approval of the takeover rests with the Minister of Finance.