Thank you very much.
Thank you for inviting the Canadian Bankers Association to appear this morning to participate in the committee's pre-budget consultations. As you said, my name is Alex Ciappara, and I am the head economist at the CBA.
The CBA works on behalf of more than 60 domestic and foreign banks operating in Canada and their employees. The CBA advocates for effective public policies that contribute to a strong banking system that benefits all Canadians. We promote financial literacy to help Canadians make informed financial decisions, and we work with banks and law enforcement to protect customers against financial crimes and to promote fraud awareness.
A healthy banking system is the cornerstone of helping customers and households manage their finances, of spurring growth for small businesses and of promoting Canada's economy internationally. Our submission, which the committee has received, offers the banking industry's views and recommendations in areas that are of interest to the committee to support vibrant communities and clean, sustainable economic growth.
Canada's banks have a long-standing track record of supporting the Canadian economy. In 2022 they contributed approximately $70 billion or 3.6% to Canada's economy, paid close to $18 billion in taxes and provided $26 billion in dividend income that went to Canadian seniors, families, pension plans, charities and endowments. They have invested approximately $115 billion in technology across Canada over the last decade.
Additionally, at the end of 2022, Canadian banks had lent in total close to $1.6 trillion in residential mortgages and authorized $1.7 trillion in business credit. In business credit, $278 billion was authorized to small businesses. Canadian small businesses are well served by the financial sector owing to robust competition. In fact, in 2021, according to Statistics Canada, 94% of debt financing requests for small businesses were approved, and since 2010 the debt approval rate has been consistently above 80%.
Our recommendations for the 2024 budget revolve around five key areas.
The first is productivity and tax reform. We support removing the financial institutions tax and the Canada recovery dividend to give investors in the banking industry confidence that Canada is committed to attracting new investment. We also suggest that the federal government undertake a comprehensive review of Canada's tax system with the objective of improving labour productivity, meeting the needs of Canada's evolving economy, ensuring that Canada can compete internationally and recommitting to tax neutrality. Bank-specific taxes hinder the industry's ability to positively impact Canada's productivity.
Our second recommendation focuses on the market conduct of unregulated and under-regulated financial service providers. We encourage the federal government to develop financial consumer protection standards for unregulated or under-regulated providers, such as e-commerce platforms and similar entities, for provincial adoption, and to work with the provinces to adopt these standards. To the greatest extent possible, the standards should emulate relevant FCAC regulations to which FRFIs must adhere.
Third, housing is top of mind for all Canadians right now. To correct supply-demand imbalances, which contribute to the affordability crisis, we suggest that the federal government pursue greater policy coordination through a forum for relevant stakeholders including federal, provincial and municipal officials responsible for housing, infrastructure and immigration as well as representatives of the construction industry and advocacy groups.
Fourth, financial crime and fraud continue to be a significant issue in Canada. We recommend that the federal government build, implement and maintain a comprehensive, single, pan-Canadian beneficial ownership registry, which would include information on both federally and provincially regulated corporations and other legal arrangements, including partnerships, trusts and associations.
We also need to ensure that legislation progresses to allow resources and activities to be targeted at areas of highest risk to facilitate collaboration and the lawful sharing of information between financial institutions and from FINTRAC and law enforcement to financial institutions. We also suggest allocating additional funding to organizations like the federal government's cyber centre to increase individual cybersecurity awareness and cross-industry collaboration.
Finally, on the transition to net zero, the CBA applauds the government for its commitment to achieve net-zero emissions by 2050. The financial sector is central to securing an orderly transition to a low-carbon economy. By financing the climate transition, banks are helping Canada meet its net-zero ambition while helping meet interim energy demands in a volatile global context. A national or harmonized process is needed for Canada to meet its climate goals and enhance productivity and economic growth.
Businesses, governments and individuals working together on the fundamental reshaping of our economy and society is critical in achieving these goals. Banks look forward to opportunities to support the generation of more clean energy, to grow our economy and to cut emissions in Canada.
Thank you for your time. I'm happy to answer any questions you may have.