Capital Reductions and Bank Notices

Summary#

The Canada Gazette lists four short financial notices.
They say that BNY Trust Company of Canada and Definity Insurance Company plan to apply for approval to reduce their stated capital by $26.5 million and $300,000,000 respectively. It also announces that E.SUN Commercial Bank, Ltd. wants to open a full-service branch in Toronto (objections by December 16, 2024) and that National Bank of Canada and Canadian Western Bank plan to seek letters patent to amalgamate under the National Bank of Canada name if a proposed acquisition goes ahead.

What it does#

• BNY Trust Company of Canada intends to apply under the Trust and Loan Companies Act to reduce the stated capital of its common shares by up to $26.5 million. The reduction would be paid to the company’s sole shareholder.
• Definity Insurance Company intends to apply under the Insurance Companies Act to reduce the stated capital of its common shares by up to $300,000,000, with any payments completed on or before December 31, 2024. Those amounts would be distributed to the company’s sole shareholder.
• E.SUN Commercial Bank, Ltd., a foreign bank headquartered in Taipei, plans to apply to the Minister of Finance (Canada) for an order under the Bank Act to establish a full-service branch in Toronto to carry on banking business in Canada. The notice invites written objections to the Office of the Superintendent of Financial Institutions (Canada) by December 16, 2024.
• National Bank of Canada and Canadian Western Bank plan to jointly apply for letters patent of amalgamation under the Bank Act to continue as one bank named National Bank of Canada (head office in Montréal), but only if National Bank of Canada completes a proposed acquisition of Canadian Western Bank.

Who's affected#

• The most directly affected parties are the companies and their sole shareholders: BNY Trust Company of Canada and Definity Insurance Company.
• People and groups who may notice changes in day-to-day banking or insurance service are customers, employees and local businesses connected to E.SUN Commercial Bank, Ltd. if its Toronto branch opens.
• Customers, employees, and shareholders of National Bank of Canada and Canadian Western Bank could be affected if the proposed acquisition and amalgamation proceed.
• Anyone who wants to object to E.SUN Commercial Bank, Ltd. opening a branch can write to the Office of the Superintendent of Financial Institutions (Canada) by December 16, 2024.

Why it matters#

• Reducing stated capital is a way for a company to return money to its shareholder. If approved, it changes the company’s balance-sheet figures and the amount of capital recorded for the firm. The notices do not mean approval has been granted. Approvals depend on regulators’ reviews.
• A new foreign bank branch in Toronto could add competition in local banking services. The public can object during the stated window.
• An amalgamation between two banks would reshape their legal structure and could affect customers, staff and regional banking options — but it is conditional on a separate acquisition and on regulator approval.