Service companies are struggling to keep pace with the global economy as companies shut down or shutter businesses.
But the Bank of Canada has promised to cut back on its shareholding, while the Canadian banking industry is trying to keep its operations afloat.
The Bank of Montreal, the country’s largest lender, announced Thursday it will cut its stake in a Canadian unit of its U.S.-based business and shut its branch in Fort McMurray, Alta., after a year-long investigation into the company’s finances.
The bank will keep some of the money it raised from the sale of its Canadian assets, the bank said.
The Canadian unit was started in 2015 as part of the Bank’s strategy to diversify its business and to remain a diversified bank, the Bank said.
It said it will focus on lending and servicing businesses.
Bank of Nova Scotia is the biggest U.K. bank, with a stake in the British Bank Group.
It announced Thursday that it will close its Halifax branch and its Toronto branch and will close the branch in Toronto.
The Toronto branch will be closed and its Canadian operations will be consolidated in the U.k.
“While the Canadian branch and Canadian operations remain at the same level, we have made significant progress in reducing costs over the past year,” the bank’s chief executive officer said in a statement.
“The Canadian branch is no longer profitable and our global operations have been restructured to meet the demands of customers in Canada and abroad.
The company has also implemented new business models, including a more effective management structure.”
Bank of New Brunswick said in the statement that its U,S.
operations will remain at a level similar to its Canada branch.
The U. S. branch has been the subject of several investigations into its accounting practices, including for misclassifying some of its assets, according to a statement from the bank.
Bank Creditors Concerns The Canadian banking sector is struggling to stay afloat.
At the same time, some of Canada’s largest lenders are struggling with their balance sheets.
The Royal Bank of Scotland, the biggest Canadian lender, has about $4.6 billion in assets and more than $3 billion in liabilities.
It has also been rocked by a scandal involving the sale and manipulation of the price of some bonds.
It had about $3.4 billion in revenue in 2017.
It is expected to have $3 trillion in assets by 2019.
Meanwhile, Bank of Toronto said its total assets are about $1 billion and about $700 million of which $300 million is held by its Canadian subsidiary.
The B.C.-based bank said it has $1 trillion in net assets.
“We have reduced risk and are managing our balance sheet at a sustainable level,” it said in its statement.
Bank Of Montreal has about half of its $2.8 billion in net worth and is a big lender in Ontario, but it said its Canadian unit will be closing down, too.
The province’s banking regulator said the bank will take control of the Canadian unit.
“Bank of Montreal is moving to consolidate operations in Canada with a view to closing the Canadian bank branch in Halifax,” said Brian Laudreault, who is the director of the Financial Consumer Agency of British Columbia.
“This will not be a decision taken lightly and we have asked Bank of Quebec to do the same.
We have been in contact with the Canadian counterparties and they have also asked us to do what they need to do.”
Bank Of Nova Scotia, the largest Canadian lender with $2 billion in revenues and about 50,000 employees, also announced Thursday to shut down its Toronto and Halifax branches and will shutter the Fort McMourray branch.
It will not move its headquarters to Halifax, said the Bank.
The Quebec-based lender is one of the world’s largest.
It opened in 2008 and has a $3-billion in assets.
It’s expected to be worth $3,000 billion by 2019, according with a Reuters survey.
Bank Canadian has about one-third of its net worth, $2 million in assets, and about a third of its revenue, about $200 million, said spokesman Robert Deacon.
He said the company has taken steps to improve its operating margins, and that the bank is reviewing its operating structure to identify areas for improvement.
Bank National has about a quarter of its money and about half its assets and about one quarter of revenue.
It closed its Halifax and Toronto branches and said it is cutting its workforce and focusing on its U.-based businesses.
It also said it was going to focus on its Canadian and Quebec branches.
Bank Canada’s actions came after the Bank warned its customers in recent weeks about the growing risks in the Canadian economy, particularly the threat of a global economic slowdown.
The Reserve Bank said in September that there was a strong risk that a global recession or economic slowdown could follow.
The central bank warned that the financial system could take a “severe, negative, and prolonged”