Whose Market Is This Anyway?/Global Finance: Are Canadians Up To It?
Publication:
The Empire Club of Canada Addresses (Toronto, Canada), 17 Oct 1996, p. 150-162


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Whose Market Is This Anyway?/Global Finance: Are Canadians Up To It?


Robert Grandy The most important capital markets development of the 1990s as the trend for Canadian issuers to raise more and more of their financing outside Canada, particularly in the United States. The significance of this for the major Canadian investment banks and their bank owners. A discussion of this type of structural change. First, a detailed review of the changes which have been taking place in the Canadian market and the reasons behind them. A consideration and analysis, with figures, of a list of the top 10 investment banks responsible for raising financing for Canadian issuers during the 1990s until August 31, 1996. A massive shift as well in corporate debt markets with 60% more monies being raised in the U.S. than in Canada. The slower shift into the U.S. market for common-stock financing, with figures. Reasons for these shifts. The question as to whether Canadians will use Canadian investment banks or U.S. investment banks to obtain access to the U.S. market, and the speaker's response. The approach for Canadian investment banks to obtain future growth. The need to combine their operations with those of the large U.S. investment banks by way of joint venture or merger in order to protect their position in the home market and grow as major players in the global market. Philip J. Olsson The speaker's "Yes" response to the question "Global Finance—Are Canadians Up to It?" Canada's financial sector as one of the new economy's great success stories, and how that it so. Canada's competitive advantages in global finance; how we exploit those advantages; a request to join the speaker in seeking public policies that will allow us to create even more jobs and economic opportunity for Canadians. Canadians underestimating our own strength. A review of our competitive advantages: low inflation, skyrocketing exports, our governments' work to restore fiscal health have made our dollar welcome once again in world capital markets; our dollar and our financial institutions are sound; the global scale and presence of many Canadian companies, most apparent in the resource industries, and in our financial institutions; we are a multicultural society with a global outlook; the Canadian propensity to save. In summary: a sound dollar; a sound financial system; world-scale industries; a multicultural, outward-looking society; and large, liquid security markets. What we are doing with these advantages. Three Canadian success stores, two of them drawn from the speaker's own organisation, using the examples of life insurance, the world of foreign exchange, and finally how RBC Dominion Securities has turned the Canadian stock exchanges into the financial centre of the mining businesses worldwide. Three suggestions of things we should be doing to keep our advantages: encourage our government to keep on doing the right things; preserve the soundness of our financial system; set up a national securities commission. A reiteration that Canadians are up to Global Finance.