Subhead:Canadian banks with branches in multiple provinces could choose to remain in Alberta under what would presumably be a similar regulatory structure to those in most developed countries.#
The CBC ran a piece with the headline “What happens to mortgages, banking if Alberta were to separate?”
It’s a fair enough question to ask. But the premise of those asking is usually to try to instill doubt among independence supporters that their assets would be protected upon the dissolution of the federation.
Financial institutions have been dealing with changing international borders for centuries. They deal with local governments, they deal with foreign governments, and they deal with other financial institutions both foreign and domestic.
In today’s electronic world, borders have become nearly invisible as far as monetary assets and debt are concerned. Banks have few issues when it comes to dealing with conversions or transferring funds over borders. They are very integrated and dozens if not hundreds of banks have branches in more than one country.
Half of Toronto Dominion’s current revenue comes from its operations in the United States. They are well experienced in international operations.
In the event of Alberta voting Yes in a binding referendum (not the current non-binding one), it would begin the process of negotiating the province’s exit from the federation. This could take months, or years.
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