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Trump claims U.S. banks banned from Canada; experts say that's false

Confirmed1 source · Sep 3, 2026

President Trump stated during an Oval Office meeting that U.S. banks are prohibited from operating in Canada, but banking experts and industry data contradict this claim.

Trump claims U.S. banks banned from Canada; experts say that's false
Image via AP

What happened

On Wednesday, President Trump told reporters and U.S. travel executives that U.S. banks are not allowed to do business in Canada, contrasting this with Canada's major banks operating in the U.S. According to the Canadian Bankers Association, 15 U.S.-based banks currently operate in Canada as branches or subsidiaries, including J.P. Morgan Chase Bank, Citibank, Bank of America, Capital One, and Wells Fargo. These U.S.-owned banks hold combined assets of approximately $124.6 billion Canadian dollars in Canada. While U.S. banks may face regulatory restrictions—such as Schedule III banks being unable to accept deposits below $150,000—they are not forbidden from entering the Canadian market.

Context

Trump appears to have conflated regulatory differences with outright prohibitions. U.S. banks can operate in Canada under two regulatory frameworks: as Schedule II subsidiaries incorporated in Canada under domestic banking rules, or as Schedule III branches subject to deposit restrictions. Most U.S. banks choose Schedule III status. Experts note that market factors, not legal bans, explain why fewer U.S. banks operate in Canada than vice versa: Canada's incumbent banks are large with established networks, and the Canadian market is relatively small compared to the U.S., making entry costly for U.S. competitors. While 15 U.S. banks operate in Canada out of over 3,700 domestically-owned U.S. commercial banks, eight Canadian banks operate in the U.S., with the Bank of Canada being Canada's central bank equivalent to the Federal Reserve, not a commercial competitor.