Evidence of meeting #73 for Finance in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was system.
A recording is available from Parliament.
Executive Director, Option consommateurs
You're right. I will give the floor to Jannick in two seconds. You're right to say that some financial institutions appeared in your riding, and we see this in other ridings as well. These are generally ridings where there are people who are—
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
But there's also Saint-Michel, which is not the richest place either. The number of branches has increased in Saint-Michel as well. The answer doesn't lie in increasing the number of branches, but in other options. That's where we're trying to find the solution.
Executive Director, Option consommateurs
Yes, but if we don't give access to branches, we will see the appearance of these notorious no-name ATMs in various businesses. The consumers do—
Liberal
Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC
I agree, but if there are more no-name ATMs, will the fees go up or down?
Manager , Legal Services, Option consommateurs
One could add that right now the market is dysfunctional. The market forces are not working. Since 1996, when the Competition Tribunal decided to open up the market to improve competition, prices have gone up. We're therefore not in a market where the rules are working very well. When we need regulation—
Manager , Legal Services, Option consommateurs
Right now we're in a market that does not work well. We're in a dysfunctional market, because the more competition there is, the more expensive things get.
Manager , Legal Services, Option consommateurs
That's why we need regulations.
In 2002, there was a regulation to force the banks to open bank accounts. Access was therefore regulated by forcing the banks, under certain conditions, to open accounts. Right now, we're asking the same thing: that there be regulation to oversee fees, because this has become a problem of access, especially for low-income people in rural areas. I therefore think that it's necessary to regulate this sector.
Conservative
The Chair Conservative Brian Pallister
Thank you very much, madam.
Madam Wasylycia-Leis, on a point of order.
NDP
Judy Wasylycia-Leis NDP Winnipeg North, MB
I'm just wondering if Mr. Protti could add to his list of material he'll provide to the committee a breakdown of the costs of each transaction involved in this area we're talking about. So it would be the costs to the institution when the fee is coming out of that institution's bank and the costs for both institutions when it's a cross-institution transaction.
President and Chief Executive Officer, Canadian Bankers Association
Are you asking can we provide that?
President and Chief Executive Officer, Canadian Bankers Association
I really have no idea if I can provide that information. I'll go back and investigate.
You'll find in the submission that we list at least 15 different cost elements that are involved in the management of the ABM system, so I'll have to take that under advisement, and I will get back to you and to the committee on it.
Conservative
The Chair Conservative Brian Pallister
Thank you, sir.
I should mention to each of you that if you've undertaken to provide additional information to the committee, as we appreciate you have, you should forward it to the clerk of the committee.
President and Chief Executive Officer, Canadian Bankers Association
Correct. Thank you.
Conservative
President and Chief Executive Officer, Canadian Bankers Association
I might have the opportunity to come back as an interested citizen.
Conservative
The Chair Conservative Brian Pallister
And thank you to each of you for your presentations. We'll suspend briefly and ask our next witness to come forward now, please.
Conservative
Mike Wallace Conservative Burlington, ON
A point of order. What happens next on this? Do we need to see more...?
Conservative
The Chair Conservative Brian Pallister
We'll deal with main estimates next week. Following the return from the break, we will have another panel, which I'm told will include representatives from each of the major banks as well. So there will probably be at least two days of possibly three hours per day devoted to--
Conservative
Conservative
The Chair Conservative Brian Pallister
Yes. We have that much interest. There will be four more panels on this particular topic in the week following the break week.