Evidence of meeting #138 for Industry, Science and Technology in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was visa.
A recording is available from Parliament.
Liberal
Vance Badawey Liberal Niagara Centre, ON
Speaking about the investments that you've made, the $500 million that you invested in Vancouver, could that $500 million have been invested somewhere else?
Senior Vice-President, Market Development, Mastercard Canada
Of course.
Senior Vice-President, Market Development, Mastercard Canada
Of course.
Liberal
The Chair Liberal Joël Lightbound
Thank you, Mr. Badawey.
Mr. Garon, the floor is yours for two and a half minutes.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
Thank you, Mr. Chair.
Mr. Hannah, I very much enjoyed your opening remarks. I listened to you closely.
I have the greatest respect for the banking system. We all know how important it is.
One of the significant characteristics of the Canadian banking system is that it's regulated, and that lends it stability. In a way, it also inspires consumer confidence.
You said that, and that's one of the things you often say when you speak publicly: We are highly regulated. With regard to credit cards—
Liberal
Tony Van Bynen Liberal Newmarket—Aurora, ON
Mr. Chair, we're getting two translations at the same time.
Liberal
Liberal
The Chair Liberal Joël Lightbound
Just a moment, please.
We've run a check and everything's operating properly for the moment. That's great.
Mr. Garon, you may resume.
Liberal
The Chair Liberal Joël Lightbound
I would ask you to pick up your remarks shortly before that point.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
I was talking about the regulatory system. We were saying that we're proud of the banking system and the fact that it's stable, unlike many other systems.
That brings me to the credit card issue.
How is it that, rather than regulate interchange fees, the Minister of Finance adopted regulations, threatened the companies and promised punishment if they didn't reach a voluntary agreement before a certain date?
The companies ultimately came to a kind of temporary agreement, which will expire in 2025. The situation regarding voluntary codes of conduct is the same.
Mr. Hannah, how is it that, when you talk about the industry, you claim to be proud that it's regulated, but that we sense no enthusiasm on your part when the time comes to make new regulations?
Senior Vice-President, Financial Stability & Banking Policy, Canadian Bankers Association
I'm sorry. I've just lost the....
Could you repeat the last part again? It's very quiet.
Liberal
The Chair Liberal Joël Lightbound
Mr. Garon, I would ask you please you to speak more softly, if possible, for the sake of the interpreters.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
You know about Canada and the official languages; that's the way it often is.
I'll reword my question to make it more concise.
When it comes to having strong regulations on interchange fees or not having voluntary codes of conduct, we don't sense that the industry is interested in new regulations. Why is that?
How would you explain that paradox?
Senior Vice-President, Financial Stability & Banking Policy, Canadian Bankers Association
I will ask my colleague Mr. Docherty to speak about the regulatory environment we have. Suffice it to say, it's substantial.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
In response to calls for strong regulation on interchange fees, why doesn't the industry say that it would support that initiative and would like to see it implemented promptly rather than settle for voluntary agreements?
I wonder about that because every time bankers represent the banking industry, they seem to say the industry is proud of the fact that it's regulated. However, they don't seem too enthusiastic when we introduce new regulations.
Why is that?
Assistant General Counsel and Vice-President, Legal and Risk, Canadian Bankers Association
I appreciate your question. I would mention that there is a role for codes of conduct in the regulatory sphere, because they can be changed quickly. They're adaptable to different circumstances.
The agreement, when it comes to interchange, just to reiterate, was between the government and the networks, not involving the banks. Certainly, yes, the banking industry is highly regulated. There's a lot of legislation. There's the consumer protection framework in the Bank Act. There are many provisions that they comply with.
Bloc
Jean-Denis Garon Bloc Mirabel, QC
I'd like to ask you a quick question, and it's not a gotcha question.
Do you think the industry is over-regulated?
Assistant General Counsel and Vice-President, Legal and Risk, Canadian Bankers Association
I don't think it's for me to say one way or the other if the industry is over-regulated or under-regulated.
