WASHINGTON, DC — During a recent White House meeting with travel industry executives, Donald Trump asserted that American banks are barred from operating in Canada, using the claim to highlight ongoing trade and tariff tensions between the two neighbors.
The remarks came in response to a reporter’s question regarding the potential restart of trade negotiations.
The Claim: US Banks Cannot Do Business in Canada
Speaking to reporters in the Oval Office on Wednesday, September 2, Trump accused Canada of taking unfair advantage of the United States, citing steep tariffs on American farmers alongside grievances regarding US tourists and airlines.
Directing his frustration toward the financial sector, Trump claimed that Canadian banks thrive in the US market while American institutions are shut out entirely.
“Canada has all of its major banks here, and we’re their biggest source of income,” Trump said. “They basically don’t allow banks of America to be in Canada… They have their banks here, Bank of Canada, all of them, big banks, big, beautiful banks. I think they have six or seven major banks here. We don’t have our banks there. You know why? They don’t allow it.”
(Note: The reference to the “Bank of Canada” was inaccurate, as it serves as the nation’s central bank rather than a commercial institution.)
Fact Check: False
Official data and financial experts confirm that Trump’s statement is false.
According to the Canadian Bankers Association, 15 US-based banks currently operate within Canada through established branches or subsidiaries. Combined, these American entities hold approximately C$124.6 billion in assets, representing more than half of all assets held by foreign banking operations in Canada.
Furthermore, Federal Reserve data indicates that eight Canadian banks operate within the United States.
James Thompson, a finance professor at the University of Waterloo, suggested that structural differences between the two nations’ banking systems may have led to the misunderstanding.
While Canadian regulations can present hurdles for foreign competitors, US banks are legally permitted to enter the market. Under Canada’s Bank Act, foreign institutions operate as either Schedule II (foreign bank subsidiaries) or Schedule III (foreign bank branches) banks, distinguishing them from domestically owned Schedule I institutions.
Ultimately, while market regulations exist, the blanket claim that US banks are prohibited from doing business in Canada is incorrect.