Why Ontario - Diversified and Growing Economy - Canada: The World's Soundest Banking System

Canada: The World's Soundest Banking System

The Geneva-based, non-profit World Economic Forum recently released ranked Canada as having the world’s soundest banking system in its annual, influential Global Competitiveness Report 2009-2010. They found that Canada has the world's soundest banking system—followed by New Zealand, Australia and Chile. And Ontario, principally in its capital city of Toronto, is the heart of Canada’s banking system.

Canada has a sophisticated, highly advanced financial system that is supported by an internationally respected regulatory and supervisory framework. Our regulatory system is updated every five years to meet not just boom times, but changing times, like the ones we are experiencing right now. It is among the soundest in the world, not just according to the Global Competitiveness Report, but also according to the International Monetary Fund.

A North American growth leader

All of this might be news to anyone who doesn’t know what many global investors already know: Canada is one of the safest places in the world to invest, and that the province of Ontario, specifically, is committed to helping businesses grow with programs and tax policies that support innovation and facilitate the commercialization of ideas. In fact, since 2004, the government of Ontario has cut business taxes by more than $1.5 billion.

A robust and growing economy

Ontario generates more than 38% of Canada’s total GDP. At almost US$500 billion, Ontario’s GDP is larger than that of Austria, Taiwan, Argentina or any of the Scandinavian countries.

Global leaders recognize the competitive advantages of doing business here. Between 2000 and 2008, foreign direct investment in Canada’s finance and insurance sector enjoyed steady growth of 62%, and foreign direct investment in all industries grew by 58%. This means that Ontario has the system and infrastructure that can help you grow rapidly – not just in Canada, but around the world.

Ontario: Home to Industry Leaders

Ontario — and Toronto in particular — has become one of North America’s top three financial services hubs. The Greater Toronto Area (GTA) is the third largest financial centre in North America by employment after New York and Chicago. It houses the headquarters or executive offices of the top five Canadian banks. It is home to 85% of the 41 foreign banks currently located in Canada. It is the headquarters for six of the top ten life insurance companies operating in Canada and headquarters for all of Canada’s top ten investment dealers. The GTA generates 20% of Canada’s GDP, and is home to 59% of foreign investors’ head offices, including many of the international leaders in financial services: American Express, CitiGroup, HSBC, ING, Morgan Stanley, UBS and many others.

Growth fuelled by an exceptional workforce

Brainpower drives success in the finance sector and Ontario has the kind of broad, deep, multilingual talent pool growing companies need. More than 336,000 people work in Ontario’s finance and insurance sector, nearly half of them in banking, and they are well educated. Overall, 59% of Ontario’s labour force has completed post-secondary education, and many have earned professional certifications. Ontario has, for example, more than 6,000 charter-holding financial analysts, more than 14,000 certified management accountants and more than 34,000 chartered accountants.

Ontario’s universities have more than 57,000 students enrolled in commerce, business and administration programs. In addition, our MBA programs have won international acclaim for the high quality of their graduates. Queen's University School of Business, the Richard Ivey School of Business at the University of Western Ontario, The University of Toronto's Rotman School of Management and York University's Schulich School of Business are all ranked among the best in the world by publications such as The Wall Street Journal, Forbes and BusinessWeek.

To help attract and develop the best and brightest financial sector talent to compete globally, the Centre of Excellence for Education in Financial Services was recently established, with a $4 million endowment over three years.

Beginning in 2008-09, the Centre’s mission is to promote innovation and technology, attract more international students to Toronto, and facilitate export of Ontario financial educational services. It will work to maintain the breadth and quality of the intellectual and entrepreneurial capacity that drive economic success and competitiveness in this key sector.

A sophisticated and cost-competitive business environment helps ensure that Ontario is the powerhouse that drives Canadian financial services. We are a manufacturing centre, a global leader in mining and an internationally recognized centre for research.

These significant factors, plus Ontario’s NAFTA-accessible location, competitive business costs, and recognized stability and capacity for growth in diverse industries such as manufacturing, IT, life sciences, financial and professional services, should assure international investors that they can invest in Ontario with confidence.