Credit Suisse asset release; KOHO Bank application

Summary#

This Canada Gazette notice contains two unrelated banking items.
Credit Suisse AG, Toronto Branch plans to apply for an order to release assets it holds in Canada on or after March 6, 2024; depositors and creditors can oppose that by March 6, 2024.
KOHO Financial Inc. plans to apply to create a Schedule I bank called KOHO Bank (French: Banque KOHO); objections are due by April 18, 2024.

What it does#

• Credit Suisse AG, Toronto Branch

  • Intends to ask the Office of the Superintendent of Financial Institutions (Canada) for permission to release the assets it maintains in Canada under the Bank Act.
  • Invites any depositor or creditor who opposes the release to file an opposition by March 6, 2024 (by mail or email to OSFI).

• KOHO Financial Inc.

  • Intends to apply for letters patent from the Minister of Finance to incorporate a Schedule I bank under the Bank Act called KOHO Bank / Banque KOHO.
  • Says the proposed bank would offer deposit and lending products (for example, savings accounts, prepaid cards, and retail loans) to Canadian residents.
  • Invites anyone who objects to submit written objections to OSFI by April 18, 2024.
  • Notes that publication of the notice is not proof the bank will be approved; the application will be reviewed and the Minister has discretion.

Who's affected#

• People who have deposits or loans with Credit Suisse AG, Toronto Branch in Canada — they are the most likely to notice the asset-release application.
• Customers of KOHO Financial Inc., people who use prepaid-card or digital banking services, and competitors in Canada’s retail banking and fintech sectors.
• If you’re unsure whether you are affected, the notices direct you to send objections to OSFI by the listed deadlines.

Why it matters#

• For Credit Suisse AG, Toronto Branch, a release-of-assets order could change how assets held in Canada are handled. That may matter to depositors and creditors who want to protect or recover money.
• For KOHO Financial Inc., creating KOHO Bank would, if approved, add a new federally regulated bank offering everyday deposit and lending products. That could mean more choices for consumers, and more competition in the digital-banking space.
• Both items are part of a formal review process. Neither action is final until the relevant authorities complete their reviews.