Federal budget 2014: Ottawa plans boost for small banks
The 2014 Budget says the Office of the Superintendent of Financial Institutions has appointed someone to “reach out” to those small banks and trusts and deal with some of the challenges they face competing with the big banks.
The highly anticipated 2014 budget has been released, and the federal government is once again making changes to the mortgage market. In contrast to the past round of regulations, the plans are aimed at assisting smaller lenders to improve their ability to compete with the big banks.
The hope is that by improving smaller lenders access to funding from the Canada Mortgage and Housing Corp (CMHC), newer lenders will be able to better establish themselves in the financial sector.
Other plans include a new process for credit unions, and rumors of more changes to the CMHC.