RE: BANK MERGER SURVEY

July 28, 1998

With the Competition Bureau’s recent ruling on bank mergers the Canadian Christian Business Federation polled its members on this very important issue. In spite of it being mid-summer and lots of staff on holidays we received an amazing 13% response rate. Here are the results as we received and tabulated them.

  1. In my opinion bank mergers are great for my bank. Yes 29% No 71%

  2. Larger banks will give me easier access to capital. Yes 14% No 86%

  3. Bank Mergers are good for businesses my size. Yes 14% No 86%

  4. Bank Mergers are necessary to enable Canadian Banks to be more competitive. Yes 30% No 70%

  5. Bank Mergers will improve day to day personal service at my bank. Yes 7% No 93%

  6. Bank Mergers will result in lower service fees. Yes 14% No 86%

  7. What should banks offer to help you run your business better?

7.1    Business Advice.

  

  

7.2 To remain competitive, to give good service and to charge fair fees only where needed.

  7.3 We are currently served to our satisfaction.

  7.4 More reasonable service charges, more assistance in financial management.

  7.5 Workable finances that fits the market requirements.

  7.6 Personal care. Attempt to understand the need, so help can be tailored to the need.

  7.7 Lower turnover of managers, staffing. Knowledge of business. Willing to serve business instead of concern over internal ratios.

  7.8 Less risk aversion and more assistance in running a sound business. More than just the numbers.

  7.9 More personal local service. Better service and fees. Better hours open. We need better banks, not bigger.

  7.10 Service, service, service at an economical cost in a competitive environment.

  7.11 Credit management support (trade accounts etc.) foreign exchange support – programs education.

  7.12 Better service, no line-ups.

  7.13 Better service and more pro-business mind. Bigger is not better.

  7.14 Easier access to the account information and lowering of fees.

  7.15 Lower charges.

  7.16 Service has become impersonal. Changes in personnel are so frequent no one knows your business anymore.

  7.17 State criteria ahead of time, e.g. ratios to meet to get financing appear subjective right now.

  7.18 I am not so concerned about my business (now with Canada Trust) but I would like to see more participation of the banks with non-profit and charitable organizations.

  7.19 The services offered by banks are adequate. However, due to limited competition, pricing is too high.

 

  8. Please identify your business type. Sales & Service 25%, Financial Services 13%, Professional 19%, Manufacturing 16%, Construction 0%, Transportation 6%, Agribusiness 6%, Retail 0%, Food Processing 3%, Technology/Design 0%, Other 13%.

  9. How large is your business? Number of Employees (full-time equivalent) 50 average

  10. Trading area ? Mostly South Western Ontario, a number do businesses in the USA.

  11. Finding Qualified enthusiastic employees is a problem. Yes 69%, No 31%

  12. Other:

  

12.1 Something has to be done about WCB, they are way out of line. For our industry premiums are $13.00 per $100.00.

  12.2 Bank mergers only good for international business. Return on capital too high. Bank charges, interest on loans and fees are too high. Too paper intensive. Too many internal rules and guidelines. Too profit oriented. We need foreign banks in Canada to increase.

  12.3 Canadian banks need to operate more like US and European banks. They are too conservative and too reactionary when protecting their loans.

  12.4 The Royal Bank/BOM merger must not exclude MasterCard. If the credit card the New Royal will offer is VISA, MasterCard will fall to only 11% of the Canadian market putting VISA in a uncompetive dominance of the credit card market.

Canadian Christian Business Federation
J. Hans Vander Stoep, Executive Director.

Distribution:
Hon. Paul Martin, Minister of Finance
Harold McKay, Chair of the Task Force.
Linda Leatherdale, Toronto Sun
Diane Frances, Financial Post
Christian Courier
Christian Week
Reformed Perspective
The Banner
Survey Respondents