Banking in the NAFTA Region
A Practitioners Landscape
April 21st, 2013
Aaron Martin
Rebecca Mcculloch
Ian Graham
Payments and Cash Management
Senior Sales Manager
HSBC Bank Canada
Payments and Cash Management
Senior Sales Manager
HSBC Bank USA
Director
Treasury & Risk Management
Saxon Energy Services
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
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Disclaimer
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Banking in the NAFTA Region
Agenda
Learning Objectives
NAFTA Overview
Saxon Introduction
Economic Comparison
Banking Landscape
Liquidity
Clearing Systems
Future Payment Trends
Key Learnings
Q&A
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Banking in the NAFTA Region
Learning Objectives
 Understand key differences among banking systems across the
NAFTA region
 Understand the strengths of each system in order to enhance the
effectiveness of your cross-border treasury operations
 Recognize the impact of future changes to cross-border banking
services
 Understand best practices and identify opportunities to optimize
cross-border operations
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NAFTA Overview
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North American Free Trade Agreement (NAFTA)
History and Background
Did you know?
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
NAFTA went into effect on
January 1, 1994.

NAFTA created the world's
largest free trade area.

NAFTA links 450 million people
producing $17 trillion worth of
goods and services.

Approximately $462.3 billion in
trade between Canada and the
USA during the same time frame.
This is ahead of China, which is
at $389.7 billion and Mexico, with
$369.5 billion.
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Canada
Facts about Canada
Did you know?
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Canada is the leading exporter of
natural resources, resourcebased technology and
knowledge.
Home to the second biggest oil
reserve and thriving mining
sector.
Canada is the second-largest
country in the world, behind
Russia.
As of 2013, Toronto is fourthlargest city in N.A. after Mexico
City, New York and Los Angeles
Canada has the fourth lowest
population density in the world,
averaging three people per
square kilometre.
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Canada
Overview of Banking Sector
 There are currently 49 commercial banks (25 domestic banks and 24 foreign bank
subsidiaries) which offer whole sale and retail banking services, 27 branches of foreign banks
and 6 federally regulated cooperative credit associations in Canada.
 Canada's domestic banking sector is dominated by five commercial banks: Royal Bank of
Canada (RBC), TD Bank Financial Group (TD), Scotiabank Group, BMO Financial Group and
CIBC (Canadian Imperial Bank of Commerce). These banks account for around 90% of the
Canadian banking sector's total assets.
 Many of Canada's leading banks have expanded in the US. Royal Bank of Canada, BMO
Financial Group, TD Bank Financial Group and HSBC Bank Canada have banking affiliates
among the top 50 US banks.
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7 Largest Banks in Canada by asset size (C$ BN as at Oct 2012):
o
o
o
o
o
o
o
Royal Bank of Canada
TD Bank
Scotiabank
BMO
CIBC
National Bank of Canada
HSBC Bank Canada*
$825
$811
$668
$525
$393
$184
$81 (as at Dec, 31, 2012)
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Mexico
Facts about Mexico
Did you know?
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Mexico is the twelfth-largest
economy in the world in terms of
GDP and second largest in Latin
America (Latam).
Mexico’s President is elected
every 6 years and cannot be reelected.
Mexico is the 2nd most liquid
exchange in Latin America,
behind Brazil.
The Mexican stock exchange is
highly concentrated, with the top
five stocks accounting for 63% of
the market universe and the top
10 for 81% (May 2012).
Mexico has hosted the
FIFASoccer World Cup in 1970
and 1986 and the Summer
Olympics in 1968.
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Mexico
Overview of Banking Sector
 There are currently 26 financial groups, 43 multiple banks, six development banks, 22
financial companies with limited operations and 81 representative offices of foreign banks
operating in Mexico.
 Legislation passed in Dec 1998 allowing foreign investment in Mexico's leading banks.
 Following extensive privatization and consolidation, approximately 75% of total banking
assets, and five of the six largest banks in Mexico are now foreign owned.
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7 Largest Banks in Mexico by asset size (USD BN July 2012):
o
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o
o
o
o
o
BBVA Bancomer (Spain)
Banamex (US)
Banorte (Mexico)
Santander (Spain)
HSBC (UK)
Inbursa (Mexico)
Scotiabank Inverlat (Canada)
$102
$92
$ 67
$ 63
$ 38
$ 25
$ 16
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Saxon Overview
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Saxon is a land based drilling and workover service company providing services to oil and gas
exploration and production companies
 Specialized “Fit For Project” rigs
 Worldwide fleet of drilling and work over rigs – footprint extends across four continents
 Contracts with National Oil Companies (“NOCs”) and International Oil Companies (“IOCs”)
2012
Forecast
%
Revenue
Breakout
by Revenue
Geography
Fleet Overview
Saxon’s fleet includes 94 Drilling and Workover rigs
 Saxon supports an additional 30+ rigs through various
Operational and Technical Services Agreements (TSAs)
– all TSA rigs are owned partially or fully by Schlumberger
Drilling Rigs (76)
 Emphasis on modular and highly mobile drilling equipment
 Focus on drilling intensive, large scale development projects
PAK: 5%
TSA: 4%
OMN: 10%
NAM: 14%
VEN: 13%
PER: 2%
ECU: 3%
Workover Rigs (18)
 Small but growing fleet
 Focus on large scale development projects
MEX: 15%
COL: 20%
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AUS: 14%
TSA – Turkey
PAK – Pakistan
OMN – Oman
VEN – Venezuela
PER – Peru
ECU – Ecuador
COL – Colombia
MEX – Mexico
NAM – North America
AUS - Australia
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Saxon Energy Services
Company Overview
Saxon Direct Operations/Rig
Targeted Growth Territories
Canada (10)
5 x 700-850 HP
Rigs
2 x 660 HP Rigs
3 x 400-450 HP
Rigs
Technical Services Agreements (TSA) w/
SLB
USA (10)
Mexico (16)
5 x 1150 HP Rigs
1 x 1000 HP Rigs
4 x 700-750 HP
Rigs
3 x 1000 HP Rigs
3 x 800-850 HP Rigs
4 x 600 HP Rigs
4 x 750 HP Rigs
2 x Workover Rigs
Australia (16)
4 x ATS 600 HP
Rigs
4 x ATS 1250 HP
Rigs
3 x ATD 1250 HP
Rigs
Colombia (14)
1 x 2000 HP Rigs
4 x 1500 HP Rigs
1 x 865 HP Rigs
6 x 750 HP Rigs
1 x 650 HP Rigs
1 x Workover Rig
Ecuador (7)
7 x Workover Rigs
Peru (2)
Pakistan (4)
1 x 2500 HP Rigs
2 x 2000 HP Rigs
1 x 1200 HP Rigs
Venezuela (8)
1 x 3000 HP Rigs
2 x 2000 HP Rigs
1 x 1500 HP Rigs
1 x 1000 HP Rigs
3 x Workover Rigs
Oman (7)
5 x 2000 HP Rigs
2 x 1000 HP Rigs
2 x 2000 HP Heli
Rigs
Total of 3,800 employees representing 30+ nationalities
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5 x Workover Rigs
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Saxon Energy Services
Diverse Geographic Footprint (94 Drilling & Workover Rigs)
Saxon Headcount by Region @ OCT-2012
N'AM (CAN-USA-MEX)
851
S'AM (COL-ECU-PER-VEN)
1,447
EH (OMN-PAK-TSA-MEA)
994
AUS
532
CORP
74
CONSOL
3,898
AUS
14%
CORP
2%
Saxon Headcount by Function @ OCT-2012
Direct Rig
3,222
Field Support
277
G&A
399
CONSOL
SAM
37%
3,898
G&A
10%
NAM
22%
EH
25%
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Saxon Energy Services
Global Employee Base w/ International Industry Experience
Field Support
7%
Employees from 30+ different Nationalities
Algeria
India
Philippines
Australia
Indonesia
Polynesia
Canada
Jordan
Romania
Chile
Malaysia
Russia
China
Mexico
Scotland
Colombia
New Zealand
Spain
Ecuador
Nigeria
Syria
Egypt
Oman
Turkey
England
Pakistan
UAE
France
Panama
USA
Germany
Peru
Venezuela
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Direct Rig
83%
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Saxon Energy Services
Company Overview
Strong, Committed Shareholders
 Saxon was taken private in Q3-2008 (previously a publicly listed company trading on the TSX) by
First Reserve Corporation (FRC) & Schlumberger (SLB) who are equal 49.5% shareholders in
Saxon (remaining % held by Saxon Management)
 Acquisition rationale: Mutual view by shareholders on long term strategic importance and enhanced
value of international drilling operations
High Quality, Advanced Technology Rigs
 Approximately 80% of rigs are Tier 1 / Tier 2
 Since 2007, Saxon has invested ~$600 MM in acquisitions, new build, and major rig upgrade
programs
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Fit-for-project drilling solutions provided by Saxon’s highly nimble and agile fleet
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Premier supplier of land-based drilling and workover operations in Shallow to Deep oil and gas
reservoirs
Strong Financial Outlook Underpinned by Long-Term Contracts
 Historically, Saxon’s customer base has been comprised of ~60% IOCs and ~20% NOCs
 Currently ~70% of 2013 revenue is currently contracted with a substantial amount of the remaining
revenue projected accruing from probable renewals and extensions
 2013 Projections: $650MM + USD in Revenue world-wide; $1.1B+ in Assets
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Economic Comparison
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USA
Mexico
Canada
 Uneven economic recovery
 Sequestration for fiscal year 2013
resulting in a potential USD 85bn
cancelation of resources across the
federal government
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Uneven growth path
Moderate growth expected during 1H13,
followed by more dynamic growth in 2H13
 Incremental economic growth
 Main concerns are about U.S. fiscal
policy, Euro area crisis, and commodity
prices
 Low interest rates expected to continue
 S&P forecasts the Fed will keep interest
rates low through 2014
 Fed funds target rate is between 0 and
a 25bps
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Monetary policy : Expect one-time
reduction of 50bp in April 2013 to take
funding rate to 4.0%
 Monetary policy: Expect BoC to remain
on hold until Q414. Policy rate will
eventually move higher but not for a
lengthy period. Financial conditions
though are extraordinarily
accommodative.
 Canadian Prime rate is currently 3.00%
 Labor market improving gradually
 Unemployment still a significant
challenge – approx. 7.7% (7.9%
expected) at February 2013
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Education reform recently approved
Fiscal and energy reforms to be sent to
Congress during 2H13
Could generate a better outlook for
medium and long term condition
 Job creation remains slack in 2013
 Mixed results for corporate profits
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Weak and disappointing 4Q12 result
increase investor caution
55% of the International Petroleum
Companies (IPC) did not meet HSBC’s
EBITDA estimates and 72% of them did
not meet income estimates.
 Balance sheets are strong.
 Corporate profits have been squeezed
recently, and are likely to be a concern
well into 2013
12.15 USD MXN year end forecast, based
on relatively sound macroeconomic
framework and positive outlook on reforms
In the near term, the currency may
struggle to make headway given near term
constraints of lower MXN yields and heavy
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long MXN market
positioning
 In the midst of interest rates holding
steady, the Canadian dollar is trending
as bearish
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 USD dollar has risen 4%on an index
basis and is higher against all other
G10 currencies as of January 2013
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Economic Comparison
USA
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Mexico
Canada
 Growth expected in 2013 because of strong
momentum of export and domestic
consumption
 Steady income growth
 Household debt to disposable income at
an all-time high
 Savings rates at very low levels
 Currently running 2% YOY/1.9% Central
Bank Target (Feb 2013) inflation up from
1.6% as at (Jan 2013)
 Largest CPI in the US since the credit card
in the 2008
 Inflation expected to rise during the first
months of year and later drop, closing the
year at 3.6%
 Inflation below target but stable
 Significant and increasing government debt
due to stimulus
 Optimism around the introduction of reform
that could lead to higher GDP growth for
Mexico. Expect the economy to increase by
3.2% in 2013, below the 3.9% growth in 2012,
but in line with the 15 year average growth
rate of 3.0%
 Federal debt to GDP is half the G7
average
 Housing market is recovering
 Housing Starts climbed by .8 percent% to
917 000 as at February 2013
 Housing Permits rose 4.6% to 946 000
(most since 2008)
 Longer-term interest rates spark recovery in
housing market, boosted purchases of
automobiles and other durable goods
 Home loans in Mexico grew by 10% in 2012
 Housing market is cooling due in large
part to new mortgage restrictions –
weighing on economic growth
 Slower inventory growth and wider trade
deficit
 Exports up 2.6% in Q412 after falling for three
consecutive months.
 Industrial production improvements in line
with US Industry Production (U.S. automotive
industry’s large presence in Mexico.)
 Trade surplus with the U.S., trade deficit
with non-U.S. countries
 Capital spending plans set to grow at a
very modest rate
Sluggish income growth
Disposable household income decreasing
High household debt
Corporations continue to aggressively
reserve cash.
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Economic Comparison
Banking Landscape
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USA
Mexico
Canada
 Financial Industry > $12.6 trillion in
assets
 Financial Industry >$4.2 trillion in assets
 Financial Industry > $3.6 trillion in assets
 Top five financial institutions hold
approx. 30% assets
 Following extensive privatization and
consolidation, approximately 90% of
total banking assets, and five of the six
largest banks in Mexico are now foreign
owned
 Top five financial institutions hold
approx. 90% of Assets.
 Thousands of participants and the
Federal Reserve
 Banco de Mexico (Banxico) is the
central bank, in charge of monetary and
exchange rate policy
 Mexico’s high and low value clearing
systems owned and operated by
Banxico
 Eleven direct clearers and the Bank of
Canada
 National coverage, but a segmented
geographic footprint
 National coverage, also segmented
geographic footprint. Major cities include
Mexico City, Monterrey, Guadalajara,
Cd. Juarez
 National coverage
 Approximately 7,000+ financial
institutions
 Vast majority of Mexico’s banking assets
are in non-domestic ownership.
 22 Financial groups, 43 multiple banks,
6 development banks, 12 financial
companies with limited operations and
58 representative offices of foreign
banks
 151 deposit-taking institutions
 FIs may utilize third-party providers and
partners for cash management services
 Banks offer full range of financial
services
 FIs may utilize third-party providers and
partners for cash management services
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Banking Landscape
USA
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Banking Landscape
Mexico
Canada
 The Federal Reserve has one paper
check clearing center and one image
check clearing center
 All checks cleared through CECOBAN
 Canadian Payments Association utilizes
six national clearing points
 Check 21 image capture and exchange
legalized in 2004
 Remote check deposit is available
 No national image exchange in Canada
(some FIs exchange images on a
proprietary basis)
 Although consumer checks writing is
dropping significantly over 70% of
Business to Business payments remain
checks.
 Checks still predominate but declining
 A large percentage of items cleared are
electronic payments
 A number of options for checks clearing
(Federal Reserve and local clearing
house arrangements)
 One central cheque clearing system
Centro de Compensacion Bancarios
(CECOBAN) images captured and
truncated
 One centralized cheque clearing system
(Automated Clearing Settlement
System)
 Multiple days for clearing (one to two is
the norm)
 One or two days depending on the time
of the day the checks were deposited
 Same day value for CAD items
deposited across six time zones
 Defined “business day” clearing times
 24 or 48 hours, depending on time
deposited
 Overnight clearing of cheque
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USA
Mexico
Canada
National Branch Network
Yes
Yes
Yes
Payment Clearing
Yes
Yes
Yes
Yes - Electronic
Yes - Electronic/Cash
Yes - Electronic
Yes - ACSS (ACH)
Yes - CECOBAN(TEF)
Yes - ACSS (EFT)
Yes LVTS
Yes SPEI
Yes LVTS
EDI, SAP®, Oracle
Yes
Yes
Yes
Cheques/Cheque Imaging
Yes
Yes
Yes
Low value 0-2
HP–0 / LP-1
Low value 0-2
Payroll
Low Value/Non-Priority
Payments
High Value/Priority Payments
Availability - Electronic
Availability - Cheque
0
1-2
0
Controlled Disbursements
Yes
Yes
No
Remote Deposit Capture
Yes
No
Yes
Lockbox
Yes
Yes
Yes
Positive Pay
Yes
No
Yes
Backdating
No
No
No
Account Analysis
Yes
Yes
Yes
Credit Interest
Yes
No
Yes
Notional Pooling
No
Yes
Yes
Cash Concentration
Yes
Yes
Yes
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Banking Landscape
USA
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Banking Landscape
Payment Systems
Mexico
Canada
 Fedwire Funds Transfer system
 Real-time gross settlement for high
value/time-critical financial/commercial
payments
 Processes high value USD credit
transfers
 Interbank and third-party transfers
 SPEI (Sistema de Pagos Electronicos
Interbancarios) is Mexico's Real Time
Gross Settlement (RTGS) system for
high value wire payments
 Payments routed through SWIFT,
settled through accounts held with
correspondent banks abroad
 LVTS (Large-Value Transfer System)
 Canada's RTGS systems
 Used for CAD wires – high value, sameday, urgent customer and bank-to-bank
transfers
 17 direct bank participants
 Approx. 88% of the total daily
transaction value is cleared through
LVTS.
 ACH (Automated Clearing House)
 Most widely used electronic funds
transfer system for ACH credit and debit
transactions
 Two operators: Federal Reserve system
(FedACH), Electronic Payments
Network (EPN)
 Used for batches of lower-value credit
and debit transfers; payroll, collections,
EDI, WEB, TEL, XBR and check
conversion (ARC & BOC) payments
 CECOBAN is Mexico's low value “ACH”
system
 SICAM: Deferred net settlement system
owned by Banco de Mexico, operated
by CECOBAN
 SIAC (Sistema de Atencion a
Cuentahabientes de Banco de Mexico)
 Used for transfers and real-time
settlement among holders of current
accounts
 ACSS (Automated Clearing Settlement
System)
 Deferred net settlement system
 Processes CAD cheques, EDI, low
value credit and debit transfers, etc.
 11 participants
 99% of daily transaction volume is
cleared through ACSS. These
transactions represent just 12% of the
total value cleared
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Banking Landscape
Payment Systems
USA
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CHIPS (Clearing House Interbank
System)
Bilateral/Multilateral netting system for
USD FX settlements, financial
settlements (loan and interest
payments), commercial and treasury
payments
Principally for Int’l USD credit
transfers
Clear high value interbank transfers
Mexico
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Bill Pay
Managed independently by banks and
third party processors
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Check Clearing Channels
On-us/Transit
Digitized Image Processing
Direct Sends
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Canada
Sistema de Pagos Electrónicos
Interbancarios (SPEI) is owned and
operated by Banxico and operates via
a queuing system.
SICAM (Sistema de Cámaras)
Deferred net settlement system
owned and operated by Banxico.
Authorize lines of credit to banks
needed to settle their net clearing
balances for cheques and electronic
credits and debits.
Settles all payments processed by
CECOBAN.
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Bill Pay
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Check Clearing
Clearing and settlement managed by
CECOBAN except on-us cheques
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USBE (US Dollar Bulk Exchange)
Next day (ACH-type) settlement of
USD items (check and EFT) among
Canadian banks
Positions are settled through US
correspondents
Corporate Creditor Identification
Number (CCIN) (Bill Payments)
Centralized bill payment reporting
used by all direct clearers
Cheque Clearing
Clearing and settlement managed by
Canadian Payments Association
(CPA), except on-us cheques
Cash Management Capabilities
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USA
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Cash Management Capabilities
Payments and Disbursements
Mexico
Canada
 Checking accounts/Zero Balance
Accounts (ZBAs)
 Checking Accounts/Zero Balance
Accounts (ZBA)
 Chequing Accounts/Zero Balance
Accounts (ZBAs)
 Electronic Data Interchange (EDI)
 Electronic Data Interchange (EDI)
 Electronic Data Interchange (EDI)
 Wire Payments
 Wire Payments
 Wire Payments
 Cross-border payments via SWIFT
through correspondents
 Large USD volumes
 Automated Clearing House Payments
(ACH) and check blocks
 Automated Clearing House (ACH)
 Electronic Funds Transfer
 Stop Payments
 Stop Payments
 Stop Payments
 Corporate/Travel and Procurement
Cards
 Not Available
 Corporate/Travel and Procurement
Cards
 Positive Pay
 No positive pay but check protection is
available
 Positive pay
 Controlled disbursement
 No controlled disbursement
 No controlled disbursement
 Tools to balance to zero daily
 ZBA structures allowed
 Tools to balance to zero daily
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USA
Mexico
 Remote Deposit Capture (RDC) – Image
technology
 RDC is available ,cheque collection
services are not common practice except
for large corporates
 Nationwide Deposits
 Mail Delivery - Once per day
 US Postal Service recently announced a
$15 billion cost savings plan potentially
closing more than 200 processing
facilities.
 Mail Delivery – Once per day (not used
for checks)
 Mail Delivery – Once per day
 Lockbox Service – Core Cash
Management service (wholesale
B2B/retail C2B) converts paper to image
and electronic payment
 Lockbox Service – not offered in Mexico
 Lockbox Service
 USD cheques drawn against US banks
settled through “southbound” cash letters
 Transition to Check Image Exchange
(aka US Check 21) demised
 Automated Clearing House (ACH) –
Robust reporting
 Automated Clearing House (ACH) –
Robust reporting
 Electronic Funds Transfer (EFT) –
Limited information
 Electronic Data Interchange (EDI)
 Electronic Data Interchange (EDI)
 Electronic Data Interchange (EDI) –
capabilities comparable to that of the US
 Imaging – Check and lockbox
 Imaging – Cheque
 Imaging - Cheque and lockbox
 Merchant Services – Debit/Credit Cards
 Merchant Services – Debit/Credit Cards
 Merchant Services – Debit/Credit
Cards/CHIP
 Check Conversion (ARC) – C2B lockbox
only
 Branch banking is highly used – branch
deposits and company payments using
special payments/deposit tickets
 Coast to Coast National Branch System
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Canada
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Cash Management Capabilities
Collections and Receivables
USA
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Cash Management Capabilities
Liquidity Management
Mexico
Canada
 Earnings credits
 Interest on credit balances
 Interest on credit balances
 Bank account overdrafts (fee)
 Bank account overdrafts (fee)
 Bank account overdrafts (fee)
 Cash Concentration/Zero Balance
Accounts (ZBA)
 Same Day Cash Concentration via SPEI
 Cash Concentration/Zero Balance
Accounts (ZBA)
 All domestic and most international
banks offer cash concentration services
 Made as either AFT direct debits or
LVTS transfers
 ACH/Debit Wires
 Zero Balance Accounts permitted and
used
 Domestic Pooling - Most banks offer
CAD and USD account structures
 Daily sweep/Offshore Liquidity
 Daily Sweep / Notional Pooling is not
permitted
 Sweep not necessary to earn interest on
deposits
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Trends in the Marketplace
INTERNAL - 29
Insert GPS number here
Trends in the Marketplace
Payment Trends
 Convergence of business and consumer payments
 B2B payment alternatives converging with consumer payments
 Corporate credit cards, travel & entertainment, purchasing, etc.
 Online payments supported for both corporate and consumers
 Online bill payments
 Online tax payment and filing
 Online consumer debits
 SWIFT for corporates
 Migration to electronic payments away from cash and paper methods:
 Migration to chip technology for cards*
 Mobile technology taking hold
 Migration to online payments
 Move toward real-time payments
 E-Mail Money Transfer (EMMT) - person to person funds transfers in real-time
INTERNAL - 30
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Trends in the Marketplace
Payment Trends
CHIP Technology

EMV CHIP is currently one of the most secure technologies available
to protect payment information and prevent payment card fraud

The EMV CHIP can be found in over 65 countries

Migration to CHIP affects payment brands, issuers, acquirers,
merchants and consumers

Training of retail staff is important. The migration requires the upgrade
and/or replacement of POS terminals, ABMs/ATMs and payment cards

More secure payment infrastructure that bolsters consumer and retailer
confidence
INTERNAL - 31
Insert GPS number here
Trends in the Marketplace
Payment Trends
USA
Mexico
Canada
New payment alternatives
Yes
Yes
Yes
New fraud opportunities
Yes
Yes
Yes
CHIP – Credit (credit card chip)
No
Yes
Yes
CHIP – Debit (debit card chip)
No
Yes
Yes
iDoc
Yes
Yes
Yes
Mobile Banking
Yes
Yes
Yes
Increased acceptability of EFT/ACH
Yes
Yes
Yes
“Cyber” fraud
Yes
Yes
Yes
Breach of account information
Yes
Yes
Yes
New payment methods/new control risks
Yes
Yes
Yes
TECHNOLOGY
RISK
INTERNAL - 32
 A single set of high-quality, understandable and enforceable global accounting standards.
 Over 100 countries report under IFRS, more countries are adopting it as a local accounting standard.
 Publically listed entities, including those in finance and insurance sectors, are regulated by the
National Banking and Securities Commission (CNBV), which mandated a 2012 adoption of IFRS
(early adoption permitted).
 Mexico: IFRS transition date is January 1, 2011; first reporting date for Mexican public companies
(excluding FIs)is December 31, 2012
 Canada: IFRS transition by 2011, new standards in IFRS and Canadian GAAP will take effect during
the transition period which may cause complications
 IFRS helps companies increase global reach, provides financial information with enhanced
comparability and transparency, and easier access to international capital, funding and investment
opportunities
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Trends in the Marketplace
International Financial Reporting Standards (IFRS)
Questions/Discussion
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2012 Financial Reports
 Bank of Montreal, Year End Consolidated Financial Statements, Oct 31st, 2012. Accessed March 2013. http://www.bmo.com/ar2012/downloads/bmo_ar12_cfs.pdf
 Bank of Nova Scotia, Year End Consolidated Financial Statements, Oct 31st, 2012. Accessed March 2013.
http://media.scotiabank.com/AR/2012/en/downloads/Scotiabank_AR_2012_FS.pdf
 Canadian Imperial Bank of Commerce, Year End Consolidated Financial Statements, Oct 31st, 2012. Accessed March 2013. https://www.cibc.com/ca/pdf/investor/ar12-en.pdf
 Toronto Dominion Bank, Year End Consolidated Financial Statements, Oct 31st, 2012. Accessed March 2013.
http://www.td.com/document/PDF/ar2012/AR2012_FS&Notes_E.pdf
 Royal Bank of Canada (RBC), Year End Consolidated Financial Statements Oct 31st, 2012. Accessed March 2013. 11 direct clearers + Bank of Canada
 “2012-2013 Economic Outlook – Economy Battles Strong Headwinds: Modest Growth Ahead”, Canadian Chamber of Commerce, December 2011,
http://www.chamber.ca/images/uploads/Reports/2011/EconomicOutlook111228.pdf)
“Automated Clearing Settlement System” Canadian Payments Association. Accessed March 2013.
https://www.cdnpay.ca/imis15/eng/Clearing_Settlement/Automated_Clearing_Settlement_System/eng/sys/Automated_Clearing_Settlement_System.aspx
Bain, B and Jonathan, J, Levin. “Mexico Banks Target Wealthy in Booming Home Market: Mortgages”, Bloomberg, Accessed March 2013.
http://www.bloomberg.com/news/2012-11-23/mexico-s-banks-target-wealthy-in-booming-home-market-mortgages.html
“Bank Operating in Canada” Canadian Bankers Association, November 14, 2012. http://www.cba.ca/en/component/content/category/61-banks-operating-in-canada
Bloom, David, Daragh Maher, Paul Mackel et al. “Currency Outlook – USD, Heads I win, tails you lose” HSBC Global Research – Macro Currency Strategy, March, 2013,
Accessed March 18, 2013. https://research.uk.hibm.hsbc/midas/Res/RDV?p=pdf&$sessionid$=KcAyac0iBrb2fCW_pE_IlBB&key=lcXeQbArrL&n=364177.PDF
“Canada’s Major Payment Systems” Bank of Canada, Accessed March 2013, http://www.bankofcanada.ca/financial-system/payments/canadas-major-payments-systems/
“Canadian Economic Month at a Glance” Conference Board of Canada, May 11, 2012, http://www.conferenceboard.ca/reports/cmaag/2012/cmaag052012.aspx
Dhillon, Sunny. “Toronto is the fourth-largest city in North America” Wary Centrists Posing Challenge in Health Care Vote.” The Globe and Mail, March 5, 2013. Accessed
March 5, 2013. http://www.theglobeandmail.com/news/toronto/toronto-now-the-fourth-largest-city-in-north-america/article9317612/)
“Federally Regulated Financial Institutions” Office of the Superintendent of Financial Institutions Canada, February 23, 2012. http://www.osfibsif.gc.ca/osfi/index_e.aspx?DetailID=568
“Fun facts about Winnie the Pooh and his friend” Accessed from the New York Public Library website March 2013. http://www.nypl.org/locations/tid/36/node/49187
International Financial Reporting Standards website. Accessed March 2013, http://www.ifrs.org/Pages/default.aspx
“Large Value Transfer System”, Canadian Payments Association Website. Accessed March 2013.
https://www.cdnpay.ca/imis15/eng/Clearing_Settlement/Large_Value_Transfer_System/eng/sys/Large_Value_Transfer_System.aspx
Martin, Sergio, and Juan Carlos Mateos. “In the spotlight…Mexico Handbook – Competitive, open and only a truck drive away” HSBC Global Research – Economics and Equity
Strategy - Mexico: October 2012. Accessed March 5, 2010.
https://research.uk.hibm.hsbc/midas/Res/RDV?p=pdf&$sessionid$=rWYSPhTNh_HCtR9a_lplftb&key=mWEGLYsvGK&n=344846.PDF
“North American Free Trade Agreement” Office of the United States Trade Representative, Accessed March 20, 2013, http://www.ustr.gov/trade-agreements/free-tradeagreements/north-american-free-trade-agreement-nafta
Watt, David. “Canada – Bank of Canada to keep rates lower for longer” HSBC Global Research – Macro Economics Canada, March 13, 2013, Accessed March 18, 2013.
https://research.uk.hibm.hsbc/midas/Res/RDV?p=pdf&$sessionid$=KcAyac0iBrb2fCW_pE_IlBB&key=bqxJLb5yJM&n=363873.PDF
Woellert, Lorraine. “Gains in Permits Signal Sustained U.S. Housing Rebound: Economy” Bloomberg, March 19, 2013.
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References: Banking in the NAFTA Region