Canada Proposes Raising Bank Ownership Threshold to Boost Competition
Finance Minister François-Philippe Champagne unveiled Budget 2026 reforms that would raise the equity threshold for mandatory widely-held bank status from $12 billion to $25 billion, allowing mid-sized challenger banks to grow while remaining under concentrated ownership.
Canada’s Finance Minister François-Philippe Champagne has proposed changes to the country’s bank ownership rules as part of Budget 2026, a move aimed at stoking competition in the banking sector by making it easier for mid-sized lenders to gather deposits and grow.
Under current regulations, Canadian banks must become widely held once they reach $12 billion in equity. Widely-held status means that no single shareholder is permitted to own 20 per cent or more of the institution. The Government of Canada plans to increase this equity threshold for mandatory widely-held status to $25 billion.
The proposed change would allow challenger banks to get larger while still being controlled by a single investor or a small group of shareholders. By raising the limit, the reforms enable mid-sized lenders to expand without losing control to dispersed shareholders.