Credit Suisse Toronto Branch Seeks Asset Release

Summary#

• Credit Suisse AG, Toronto Branch plans to apply under the Bank Act to release the assets it holds in Canada on or after March 6, 2024. Depositors or creditors who oppose that step can file objections by March 6, 2024.
• KOHO Financial Inc. intends to apply to create a Schedule I bank to be called KOHO Bank / Banque KOHO, offering things like savings accounts, prepaid cards and retail loans to Canadians. Objections are accepted until April 18, 2024. The notice does not mean the bank will definitely be approved.

What it does#

• For Credit Suisse AG, Toronto Branch:

  • Says the branch will ask the Superintendent of Financial Institutions for permission to release the assets it maintains in Canada.
  • Invites any depositor or creditor who objects to file an opposition by March 6, 2024 with the Office of the Superintendent of Financial Institutions (OSFI).

• For KOHO Financial Inc.:

  • Announces an intended application for letters patent to incorporate a Schedule I bank under the Bank Act with the name KOHO Bank / Banque KOHO.
  • Describes the proposed bank’s business: deposit and lending products (for example, savings accounts, prepaid cards, retail loans) for Canadian residents.
  • Invites objections to be sent to OSFI by April 18, 2024.
  • Notes that publication of the notice is not proof the bank will be allowed; approval depends on the normal review and the Minister of Finance’s decision.

Who's affected#

• For Credit Suisse AG, Toronto Branch:

  • Depositors and creditors of the branch’s business in Canada are the main people directly affected.
  • Others will be affected only if the branch’s Canadian assets are released in a way that changes payment or claim outcomes.

• For KOHO Financial Inc.:

  • People who might use a new digital or challenger bank (customers interested in savings accounts, prepaid cards or retail loans).
  • Competitors in the banking and fintech sectors.
  • Regulators and anyone interested in new bank entrants to the Canadian market.

If it’s unclear who else might be affected, the notices do not spell that out.

Why it matters#

• The Credit Suisse notice matters because releasing assets held in Canada could change how and when depositors or creditors are paid or make claims. Those with concerns have a short window (until March 6, 2024) to object to OSFI.
• The KOHO notice matters because a new Schedule I bank could add a new option for consumers and increase competition in retail and digital banking. But this is only an application step — the bank is not approved yet, and objections can be submitted until April 18, 2024.