The Leader of the Conservative Party of Canada and the Official Opposition, Pierre Poilievre, has called on the Trudeau Government to reject the proposed merger between RBC and HSBC.
Poilievre argues that the merger would decrease competition in the banking sector, leading to higher borrowing costs for Canadian households.
According to Poilievre, the merger between the two banking giants would further consolidate an already overly concentrated banking sector, giving too much power to too few players. He believes that Canadian banks should compete for customers rather than simply buying them.
Poilievre also pointed out that HSBC has been offering rate advantages relative to RBC, and if the merger goes ahead, this competitive advantage will be lost. This, in turn, would remove the downward pressure on lending rates, potentially forcing Canadian households to pay even more.
The Conservative leader is urging Canada’s Finance Minister, Chrystia Freeland, to intervene and stop the merger. Poilievre highlighted the findings of the Competition Bureau, which recognized HSBC’s mortgage business as a rate disruptor in the Canadian market.
He argued that If smaller competitors can bring down rates, it is in the interest of consumers to support their continued presence. However, the merger between RBC and HSBC would allow the largest bank in Canada to acquire 800,000 customers without offering them any additional benefits.
In Poilievre’s view, it is crucial to ensure that large domestic industries, particularly those protected by the government, engage in healthy competition rather than consolidating their power.
He believes that industries should compete based on product quality and price, rather than bulldozing over customer interests. Poilievre concluded by emphasizing the importance of blocking the merger and bringing greater competition and lower rates for Canadians.
Echoing Poilievre’s sentiments, Conservatives called on Trudeau to reject the merger, bringing attention to the need for increased competition in the banking sector, and ultimately, for a healthier economy.
