Credit Suisse asset release; KOHO bank application

Summary#

This Canada Gazette notice contains two separate finance items. It says Credit Suisse AG, Toronto Branch plans to ask the federal regulator to release the assets it holds in Canada, and that KOHO Financial Inc. has applied to create a new Schedule I bank called KOHO Bank / Banque KOHO.

What it does#

• Credit Suisse AG, Toronto Branch intends to apply, under section 599 of the Bank Act, to the Office of the Superintendent of Financial Institutions (Canada) for an order to release the assets it maintains in Canada. Anyone who is a depositor or creditor and opposes that release can file an opposition by mail or email with OSFI on or before March 6, 2024.
• KOHO Financial Inc. intends to apply under subsection 25(2) of the Bank Act for letters patent to incorporate a Schedule I bank named KOHO Bank / Banque KOHO. The bank would offer deposit and lending products (for example, savings accounts, prepaid cards, and retail loans) to Canadian residents. Objections to the proposed bank can be sent in writing to the Office of the Superintendent of Financial Institutions (Canada) on or before April 18, 2024.
• The KOHO notice stresses that this publication is an application, not a promise of approval. Any final decision depends on the normal review process and the Minister of Finance.

Who's affected#

• Depositors and creditors of Credit Suisse AG, Toronto Branch who have money or claims connected to its Canadian business.
• Customers and potential customers who might use services from KOHO Bank if it is approved (e.g., people who use savings accounts, prepaid cards, or small retail loans).
• The federal regulator (Office of the Superintendent of Financial Institutions (Canada)) and the Minister of Finance, since they handle objections and approvals.
• Other banks and fintech firms who watch new entrants into the Canadian retail banking market.
• If it is unclear who else might be affected, the notices do not provide more detail.

Why it matters#

• If the regulator allows Credit Suisse AG, Toronto Branch to release its Canadian assets, that could change how and when depositors or creditors can recover money tied to that branch.
• If KOHO Financial Inc. becomes KOHO Bank, consumers could get another option for everyday banking products and fintech-style services in Canada. That could affect fees, features, and competition.
• Both items show routine regulatory steps. The KOHO item is only an application; it does not mean the bank will be created.