Except as permitted by the Bank Act, no person shall have a 'significant interest' (more than 10 per cent ownership) in any class of shares of a bank. The Finance Minister is prohibited from approving a transaction that would cause a bank to become a subsidiary of a foreign bank that is from a non-WTO member country, unless the Minister is satisfied that treatment as favourable for banks to which the Bank Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary. The establishment of branches in Canada by foreign banks from non-WTO member countries is also subject to a condition of reciprocal treatment.
"PART I - Interpretation and Application
Definitions
2  In this Act, [...]
foreign bank, subject to section 12, means an entity incorporated or formed by or under the laws of a country other than Canada that
(a) is a bank according to the laws of any foreign country where it carries on business,
(b) carries on a business in any foreign country that, if carried on in Canada, would be, wholly or to a significant extent, the business of banking,
(c) engages, directly or indirectly, in the business of providing financial services and employs, to identify or describe its business, a name that includes the word “bank”, “banque”, “banking” or “bancaire”, either alone or in combination with other words, or any word or words in any language other than English or French corresponding generally thereto,
(d) engages in the business of lending money and accepting deposit liabilities transferable by cheque or other instrument,
(e) engages, directly or indirectly, in the business of providing financial services and is affiliated with another foreign bank,
(f) controls another foreign bank, or
(g) is a foreign institution, other than a foreign bank within the meaning of any of paragraphs (a) to (f), that controls a bank incorporated or formed under this Act,
but does not include a subsidiary of a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, unless the Minister has specified that subsection 378(1) no longer applies to the bank; (banque étrangère)
[...]
significant interest means a significant interest determined in accordance with section 8; (intérêt substantiel)
[...]
Significant interest
8  (1) A person has a significant interest in a class of shares of a bank or a bank holding company if the aggregate of
(a) any shares of that class beneficially owned by the person, and (b) any shares of that class beneficially owned by entities controlled by the person exceeds 10 per cent of all of the outstanding shares of that class of shares of the bank or bank holding company.
[...]
Increasing significant interest
(2) A person who has a significant interest in a class of shares of a bank or bank holding company increases that significant interest in the class of shares if the person or any entity controlled by the person
(a) acquires beneficial ownership of additional shares of that class, or
(b) acquires control of any entity that beneficially owns shares of that class, in such number as to increase the percentage of shares of that class that are beneficially owned by the person and by any entities controlled by the person.
[...]
PART VII - Ownership
DIVISION II - Ownership of Banks
Significant interest
372  Except as permitted by this Part, no person shall have a significant interest in any class of shares, or in membership shares, of a bank.
Acquisition of significant interest
373 (1) Subject to this Part, no person, or entity controlled by a person, shall, without the approval of the Minister, purchase or otherwise acquire any share or membership share of a bank or purchase or otherwise acquire control of any entity that holds any share or membership share of a bank if (a) the acquisition would cause the person to have a significant interest in any class of shares or in membership shares of the bank, as the case may be; or (b) where the person has a significant interest in a class of shares or in membership shares of the bank, the acquisition would increase the significant interest of the person in that class or in the membership shares, as the case may be.
Amalgamation, etc., constitutes acquisition
(2) If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares or in membership shares of a bank, the entity is deemed to be acquiring a significant interest in that class of shares or in membership shares, as the case may be, through an acquisition for which the approval of the Minister is required under subsection (1).
[...]
Matters for consideration
396 [...] Favourable treatment
(3) The Minister shall not approve a transaction that would cause a bank to become a subsidiary of a foreign bank within the meaning of any of paragraphs (a) to (f) of the definition foreign bank in section 2 that is a non-WTO Member foreign bank unless the Minister is satisfied that treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
[...]
PART XII.1 - Authorized Foreign Banks
Formalities of Authorization
Order permitting carrying on of business in Canada, etc.
524 (1) On application by a foreign bank, the Minister may make an order permitting the foreign bank to establish a branch in Canada to carry on business in Canada under this Part. [...]
Reciprocal treatment
(3) The Minister may make an order only if the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the authorized foreign bank principally carries on business, either directly or through a subsidiary.[...]" (Bank Act (S.C. 1991, c. 46), last amended on 2021-06-30, Sections 2, 8, 372, 373, 396 and 524)"
Bank Act (S.C. 1991, c. 46), last amended on 2021-06-30, Sections 2, 8, 372, 373, 396 annd 524
[<a href="https://laws-lois.justice.gc.ca/eng/acts/B-1.01/20030101/P1TT3xt3.html">Act</a>]