HSBC Bank Canada
Encyclopedia
HSBC Bank Canada, formerly the Hongkong Bank of Canada , is a bank
in Canada
that is part of British banking giant HSBC
- one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the largest foreign-owned bank in the country. Corporate headquarters are in the financial district of Vancouver
, British Columbia
. HSBC Bank Canada's Institution Number (or bank number) is 016.
In 1979, The Hongkong and Shanghai Banking Corporation bought a Vancouver-based acceptance company that financed machinery and equipment for small companies operating in British Columbia. In 1981, The Hongkong and Shanghai Banking Corporation incorporated Hongkong Bank of Canada (HBC), in Vancouver as a chartered bank effective July 1, 1981 under the Bank Act of Canada. HBC used the acceptance company as a base for the new bank. HBC had a few retail branches primarily focused on Asian-Canadians, but the major portion of the bank's business was with commercial enterprises. HBC opened branches in major cities in western Canada and in Toronto
and Montreal
but growth was slow. HBC sought to grow by acquisition, but the first three attempts to buy an existing institution were unsuccessful. In 1986, on November 27, HBC acquired the assets of Bank of British Columbia
, which had essentially failed. HBC gained $2.6 billion in assets and added 41 branches in British Columbia and Alberta. Overnight, HBC moved from the 20th largest to 9th largest bank in Canada.
In 1988, on May 20, HBC amalgamated with Midland Bank Canada, thereby increasing assets by $472 million, gaining many new corporate banking relationships, and expanding to Eastern Canada. In 1990, on May 29, HBC acquired Lloyds Bank of Canada
, thereby increasing assets by $4.4 billion and adding 53 branches across Canada, mostly in Ontario and Quebec. HBC’s assets after this acquisition were $10.2 billion at October 31, 1990. This merger doubled its branch network, substantially increased HBC's exposure in eastern Canada, and made it a bilingual operation with branches in eight Quebec communities. HBC became the largest foreign bank. (Lloyds Bank had acquired Continental Bank of Canada
1986. This began in 1973 as Niagara Finance Company, became IAC Limited, and then Continental Bank.) In 1993, on April 30, HBC acquired ANZ Canada consisting of one office in Toronto, which it merged with its 70 York Street branch. This purchase made HBC the seventh largest bank in Canada with branches in every province except Prince Edward Island. (ANZ had acquired Grindlays Bank Canada with its acquisition of Grindlays, but management was more interested in expanding in the Asia-Pacific area.) In 1995, on August 1, HBC acquired Metropolitan Trust Company of Canada (1 branch).
In 1996, on August 31, HBC acquired Barclays Bank Canada
. Barclays had re-entered Canada in 1979 and developed a diversified but modest range of activities. In 1985, it bought the assets of Wells Fargo
Bank (Canada). Wells Fargo sold its operations in Alberta (and in Florida) to Barclays as part of a re-focusing on its home market. In 1993, Barclays Bank Canada closed its Edmonton branch. In 1994, Barclays closed six branches (Vancouver, Calgary, Winnipeg, London, Montreal and Halifax), retaining only its head office. Barclays' Canadian operations lost approximately $120-million between 1992 and 1996. HBC acquires the Seattle, Washington and Portland, Oregon branches of HSBC. The growing north-south trade occasioned by the adoption of the North American Free Trade Agreement
(NAFTA) in 1994 made this move into the United States seem a natural expansion along with the business interests of many of the bank's customers. In 1998, on May 1, HBC acquired National Westminster Bank
of Canada, which had assets of C$844.5 million. NatWest had entered Canada in 1982. In 1999, on June 21, HBC changed its name to HSBC Bank Canada, consistent with the HSBC Group's strategy of creating the global brand, HSBC. On December 3, it acquired Prenor Trust Company of Canada.
In 2000, HSBC Bank Canada acquired Republic National Bank of New York (Canada) after HSBC acquired the parent bank. (Republic had entered Canada in 1982, and had itself acquired several banks. First, in 1993, Republic acquired Bank Leumi Le Israel (Canada). The next year, Republic bought Israel-based Bank Hapoalim
(Canada). Lastly, in 1996, Republic bought Israel Discount Bank
of Canada's operations.) In 2001, on April 1, HSBC (Canada) acquired CCF Canada after HSBC acquired CCF Canada's parent company, CCF
. CCF had just acquired Crédit Lyonnais
Canada. Credit Commercial de France (Canada) had entered Canada in 1982 when it established an office in Montreal. Société Genérale (Canada) acquired it in 1990. CCF had returned to Canada in 2000. In 2002, HSBC Holdings merged its Canadian and US operations to create a North American transnational bank. HSBC Bank USA of New York, with assets of US$87 billion, and HSBC Canada, with assets of C$34 billion, share some operating resources but remain separate units. In 2004, HSBC Bank Canada acquired Intesa Bank
's Canadian unit, which had 11 branches and total assets of C$1.1 billion when the two banks completed the transaction on June 1, 2004.
On September 20, 2011, HSBC Canada sold its full-service brokerage division, HSBC Securities (Canada) inc., to National Bank Financial Group for C$208 million.
(CBA) and registered member with the Canada Deposit Insurance Corporation
(CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:
Effective March 15, 2010, BMO Bank of Montreal
ceased accepting deposits at its ATMs from HSBC customers and resumed charging a convenience fee
after five years of an ATM sharing agreement with HSBC Bank Canada. HSBC continues as a member of The Exchange
Network. This was a decision HSBC took as part of a restructuring of its personal banking strategy. Instead, HSBC will rebate the convenience fee charged to its HSBC Premier qualified customers to a maximum of $1.50 per instance for using any ATM in Canada.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
that is part of British banking giant HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
- one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the largest foreign-owned bank in the country. Corporate headquarters are in the financial district of Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
. HSBC Bank Canada's Institution Number (or bank number) is 016.
History
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
and Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
but growth was slow. HBC sought to grow by acquisition, but the first three attempts to buy an existing institution were unsuccessful. In 1986, on November 27, HBC acquired the assets of Bank of British Columbia
Bank of British Columbia
There have been two Canadian banks with the name Bank of British Columbia.-The first bank:The first was established by Royal Charter in 1862, with its head office in London. Between 1862 and 1871 it issued dollar banknotes. By 1885 it had branches in San Francisco, Portland, Oregon , Victoria,...
, which had essentially failed. HBC gained $2.6 billion in assets and added 41 branches in British Columbia and Alberta. Overnight, HBC moved from the 20th largest to 9th largest bank in Canada.
In 1988, on May 20, HBC amalgamated with Midland Bank Canada, thereby increasing assets by $472 million, gaining many new corporate banking relationships, and expanding to Eastern Canada. In 1990, on May 29, HBC acquired Lloyds Bank of Canada
Lloyds Bank of Canada
Lloyds Bank of Canada was formed in 1986 when Lloyds Bank Plc of the United Kingdom purchased the Continental Bank of Canada. This bank had been formed earlier in the 1980s when IAC, a financing company, decided to expand the scope of operations....
, thereby increasing assets by $4.4 billion and adding 53 branches across Canada, mostly in Ontario and Quebec. HBC’s assets after this acquisition were $10.2 billion at October 31, 1990. This merger doubled its branch network, substantially increased HBC's exposure in eastern Canada, and made it a bilingual operation with branches in eight Quebec communities. HBC became the largest foreign bank. (Lloyds Bank had acquired Continental Bank of Canada
Continental Bank of Canada
The Continental Bank of Canada was a chartered bank formed in Canada when IAC, a financing company, decided to expand the scope of operations in the 1980s. This small bank struggled for several years before being acquired by Lloyds Bank of the United Kingdom. Continental Bank became "Lloyds Bank of...
1986. This began in 1973 as Niagara Finance Company, became IAC Limited, and then Continental Bank.) In 1993, on April 30, HBC acquired ANZ Canada consisting of one office in Toronto, which it merged with its 70 York Street branch. This purchase made HBC the seventh largest bank in Canada with branches in every province except Prince Edward Island. (ANZ had acquired Grindlays Bank Canada with its acquisition of Grindlays, but management was more interested in expanding in the Asia-Pacific area.) In 1995, on August 1, HBC acquired Metropolitan Trust Company of Canada (1 branch).
In 1996, on August 31, HBC acquired Barclays Bank Canada
Barclays Bank Canada
-1929-1956:Barclays Bank of Canada was a unit of Barclays Bank PLC. The Canadian unit was incorporated in 1929 in Montreal, QC with office later established in Toronto.Like the other Canadian chartered banks, it issued its own paper money...
. Barclays had re-entered Canada in 1979 and developed a diversified but modest range of activities. In 1985, it bought the assets of Wells Fargo
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
Bank (Canada). Wells Fargo sold its operations in Alberta (and in Florida) to Barclays as part of a re-focusing on its home market. In 1993, Barclays Bank Canada closed its Edmonton branch. In 1994, Barclays closed six branches (Vancouver, Calgary, Winnipeg, London, Montreal and Halifax), retaining only its head office. Barclays' Canadian operations lost approximately $120-million between 1992 and 1996. HBC acquires the Seattle, Washington and Portland, Oregon branches of HSBC. The growing north-south trade occasioned by the adoption of the North American Free Trade Agreement
North American Free Trade Agreement
The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada – United States Free Trade Agreement...
(NAFTA) in 1994 made this move into the United States seem a natural expansion along with the business interests of many of the bank's customers. In 1998, on May 1, HBC acquired National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
of Canada, which had assets of C$844.5 million. NatWest had entered Canada in 1982. In 1999, on June 21, HBC changed its name to HSBC Bank Canada, consistent with the HSBC Group's strategy of creating the global brand, HSBC. On December 3, it acquired Prenor Trust Company of Canada.
In 2000, HSBC Bank Canada acquired Republic National Bank of New York (Canada) after HSBC acquired the parent bank. (Republic had entered Canada in 1982, and had itself acquired several banks. First, in 1993, Republic acquired Bank Leumi Le Israel (Canada). The next year, Republic bought Israel-based Bank Hapoalim
Bank Hapoalim
Bank Hapoalim is Israel’s largest bank. As of 31 December 2008 it had total consolidated assets of NIS 306.85 billion. The Bank has a significant presence in global financial markets. In Israel, the Group has over 260 full-service branches, eight regional business centers, and industry desks...
(Canada). Lastly, in 1996, Republic bought Israel Discount Bank
Israel Discount Bank
Israel Discount Bank Ltd. , I.D.B., is one of Israel's three largest banks, with 260 branches, and assets of 171 billion NIS .-History:...
of Canada's operations.) In 2001, on April 1, HSBC (Canada) acquired CCF Canada after HSBC acquired CCF Canada's parent company, CCF
Crédit Commercial de France
Crédit Commercial de France was a commercial bank in France, headquartered in Paris, avenue des Champs-Élysées. It became a wholly owned subsidiary of HSBC in April 2000, and was renamed HSBC France on 1 November 2005....
. CCF had just acquired Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
Canada. Credit Commercial de France (Canada) had entered Canada in 1982 when it established an office in Montreal. Société Genérale (Canada) acquired it in 1990. CCF had returned to Canada in 2000. In 2002, HSBC Holdings merged its Canadian and US operations to create a North American transnational bank. HSBC Bank USA of New York, with assets of US$87 billion, and HSBC Canada, with assets of C$34 billion, share some operating resources but remain separate units. In 2004, HSBC Bank Canada acquired Intesa Bank
Banca Intesa
Banca Intesa S.p.A. was formed in 1998 from the merger of Cassa di Risparmio delle Provincie Lombarde and Banco Ambroveneto...
's Canadian unit, which had 11 branches and total assets of C$1.1 billion when the two banks completed the transaction on June 1, 2004.
On September 20, 2011, HSBC Canada sold its full-service brokerage division, HSBC Securities (Canada) inc., to National Bank Financial Group for C$208 million.
Divisions
Operating divisions of HSBC:- HSBC Investments (Canada)
- HSBC Capital (Canada)
- HSBC Trust Company (Canada)
- HSBC Securities (Canada), which includes a discount brokerage division called HSBC InvestDirect
- HSBC Insurance Agency (Canada)
Executives
- Lindsay Gordon, president and chief executive officer
- Jim F Mahaffy, executive vice president, global corporate banking
- Margaret Willis, executive vice president personal financial services and wealth management
- Mark Watkinson, head of commercial banking
- Graham A McIsaac, chief financial officer
- Gary L Wilson, chief credit officer
- Neal Beasley, chief information officer
- Scott Bartos, chief compliance officer
- Pehlaj H R Malhotra, chief risk officer
- Ernest Yee, vice president, corporate affairs
- Rod A. McIsaac, executive vice president and managing director, investment banking
- Sandra J Stuart, chief technology officer
Sponsorships
- Toronto Blue JaysToronto Blue JaysThe Toronto Blue Jays are a professional baseball team located in Toronto, Ontario, Canada. The Blue Jays are a member of the Eastern Division of Major League Baseball 's American League ....
Baseball Club - Vancouver CanucksVancouver CanucksThe Vancouver Canucks are a professional ice hockey team based in Vancouver, :British Columbia, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The Canucks play their home games at Rogers Arena, formerly known as General Motors Place,...
Hockey Club - Calgary FlamesCalgary FlamesThe Calgary Flames are a professional ice hockey team based in Calgary, Alberta, Canada. They are members of the Northwest Division of the Western Conference of the National Hockey League . The club is the third major-professional ice hockey team to represent the city of Calgary, following the...
Hockey Club - MMICCMMICCThe MMICC is an international business case competition hosted by the Desautels Faculty of Management of McGill University...
- McGill Management International Case Competition in MontrealMontrealMontreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
, QC - Jetbridges at Toronto Pearson International AirportToronto Pearson International AirportToronto Pearson International Airport is an international airport serving Toronto, Ontario, Canada; its metropolitan area; and the Golden Horseshoe, an urban agglomeration that is home to 8.1 million people – approximately 25% of Canada's population...
and Vancouver International AirportVancouver International AirportVancouver International Airport is located on Sea Island in Richmond, British Columbia, Canada, about from Downtown Vancouver. In 2010 it was the second busiest airport in Canada by aircraft movements and passengers , behind Toronto Pearson International Airport, with non-stop flights daily to...
Membership
HSBC Canada is a member of the Canadian Bankers AssociationCanadian Bankers Association
The Canadian Bankers Association is a financial lobbying group that works on behalf of 52 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 267,000 employees. The CBA was organized in Montreal in 1891, making it one of Canada’s oldest interest...
(CBA) and registered member with the Canada Deposit Insurance Corporation
Canada Deposit Insurance Corporation
-External links:*** Official CDIC site*...
(CDIC), a federal agency insuring deposits at all of Canada's chartered banks. It is also a member of:
- InteracInteracInterac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
- MasterCardMasterCardMastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
- Cirrus Network
- The ExchangeACCEL/ExchangeACCEL/Exchange is an interbank network. It connects over 245,000ATMs in all 50 states in the United States, with a further 2,300 throughout Canada under its subsidiary, The Exchange Canada. The network also has a small number of ATMs in certain U.S. Air Force Bases around the world, and over one...
Effective March 15, 2010, BMO Bank of Montreal
Bank of Montreal
The Bank of Montreal , , or BMO Financial Group, is the fourth largest bank in Canada by deposits. The Bank of Montreal was founded on June 23, 1817 by John Richardson and eight merchants in a rented house in Montreal, Quebec. On May 19, 1817 the Articles of Association were adopted, making it...
ceased accepting deposits at its ATMs from HSBC customers and resumed charging a convenience fee
ATM usage fees
ATM usage fees are the fees that many banks and interbank networks charge for the use of their Automated Teller Machines . In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users...
after five years of an ATM sharing agreement with HSBC Bank Canada. HSBC continues as a member of The Exchange
ACCEL/Exchange
ACCEL/Exchange is an interbank network. It connects over 245,000ATMs in all 50 states in the United States, with a further 2,300 throughout Canada under its subsidiary, The Exchange Canada. The network also has a small number of ATMs in certain U.S. Air Force Bases around the world, and over one...
Network. This was a decision HSBC took as part of a restructuring of its personal banking strategy. Instead, HSBC will rebate the convenience fee charged to its HSBC Premier qualified customers to a maximum of $1.50 per instance for using any ATM in Canada.