As of 2015, the five largest banks in Canada are Toronto-Dominion Bank, Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. In Canadian finance, these banks are known as the "Big Five" and have historically performed well within the country, according to Motley Fool Canada.Continue Reading
Canadians have a tendency to view the Big Five as a group rather than individual banks, and many customers see little difference between the five companies. However, they are five separate entities with different policies and performance levels. Royal Bank of Canada, Toronto-Dominion and Bank of Nova Scotia have had stronger performances over the past two decades than the other two members of the Big Five. Each also has different levels of international involvement; Canadian Imperial Bank of Commerce places more focus on Canadian operations, whereas the other four have presences in the United States and the Caribbean.
Although the Big Five have performed well overall, they still face challenges. In 2015, low oil prices had a strong effect on the Canadian economy, which had an effect on bank performance. Interest rates also remained low, which affected profits. However, despite challenges, the Big Five are still stable banks, which make them good options for banking stocks, according to the Globe and Mail.Learn more about Banks