Published on Reuters
By Nivedita Balu

February 28, 2025

TORONTO, Feb 28 (Reuters) – Canada’s big bank CEOs are urging the federal government to remove internal trade barriers, evaluate tax policies and other regulation as the country’s top lenders cautioned that tariff and trade risks are clouding the economic outlook.

The six big Canadian banks, which control more than 90% of the banking market and are among the biggest publicly listed companies in Canada, beat analysts’ expectations for first-quarter profits but set aside large sums to shield against bad loans in an uncertain economy.

The banks’ CEOs delivered similar remarks on earnings calls this week. U.S. President Donald Trump has vowed to impose 25% tariffs on most Canadian imports on March 4.

“The bank CEOs have a voice … (They) are opportunistically pushing for, principally, a reduction in regulatory burden,” said Kevin Burkett, portfolio manager at Burkett Asset Management, which owns shares of Bank of Montreal (BMO.TO), opens new tab, Royal Bank of Canada (RY.TO), opens new tab and TD Bank (TD.TO), opens new tab.

Trump’s proposed tariffs could reduce growth substantially, lead to job cuts and raise prices of many goods in the U.S. and Canada. Canada sends around 75% of all exports to its southern neighbor.

“The current situation is also a clear signal that Canadian governments and businesses must pull together to remove the obstacles that hold back national productivity and strengthen our competitiveness,” TD Bank CEO Raymond Chun told analysts.

Chun and other executives said the government must tackle barriers that hold back trade between the 10 provinces while accelerating mineral, energy and resource projects.

“This is the chance for Canada to make structural improvements to the country’s economic productivity and competitiveness,” Royal Bank of Canada CEO Dave McKay said.

“This can drive future growth opportunities with significant benefits to Canadians amidst this uncertainty.”

“The banking industry will play an important role in supporting a much more deliberate national economic plan,” he said.

Bank of Montreal CEO Darryl White said some clients on both sides of the border were being more cautious about capital deployment.