For Banks and Financial Institutions

On the banking front, Buxton Financial assists banks and other financial services companies to establish platforms in Canada, as well as providing other strategic advice. Drawing on our extensive experience, much of it in the foreign bank community in Canada, we guide banks and financial services companies through the application process from the initial steps towards incorporation to the putting in place of infrastructure in order to be ready to open their doors to the public.

Buxton Financial can help a bank to incorporate in Canada
The application process is, on the surface, fairly straight forward. The Office of the Superintendent of Financial Institutions (‘OSFI’) has a guide for foreign banks setting out how to apply and lists its information requirements. However the OSFI guide was written to be generally applicable to all applicants, so it doesn’t spell out the nuances that apply for applicants that intend to approach niche markets. A copy of the guide can be found on the OSFI web site at www.osfi-bsif.gc.ca.

Buxton Financial brings to the table its extensive ‘hands-on’ experience of actually managing a bank and manning the front lines of a bank. We are attuned to the many and complex risk management, capital management and liquidity management issues, not to mention business development issues. Buxton Financial guides an applicant through the process, providing the level of in depth support appropriate for the situation at hand. We identify and address potential issues at the earliest possible stage with the client to ensure that these issues have been mitigated.

Advisory and consulting services that Buxton Financial can provide
Given our respective backgrounds, the range of services we can offer is quite varied and broad. Below is a listing of some of the more important areas where we can add value:

  • Preparation and completion of the application
  • Writing the business plan on a basis consistent with the planned banking operations of the applicant
  • Preparing the comprehensive financial model (Excel). The model would include the following:
    • Projected financial statements (balance sheet, income statement, sources and uses of funds)
    • Full assumptions and metrics for various inputs (staffing levels, salaries, asset and liability volumes and growth, interest rates and spreads, metrics for various sources of fee income, premises, etc.)
    • Regulatory compliance ratios and statistics
    • Scenario testing and stress testing
  • Preparing and/or reviewing key policies and procedures papers. This would include various risk management and corporate governance policies.
  • Guiding the bank through any market surveys that may be required.
  • Assisting with the selection of key employees (if desired by the client)
  • Assisting with preparation for ‘pre-commencement reviews’ by OSFI

References
We believe that we are well regarded in the banking industry; we have received referrals from major financial institutions and from recognized banking service providers, and our past and present customer base includes international and domestic names. Subject to our clients’ confidentiality desires, we can arrange for potential clients to speak with one or more of our Canadian banking clients who we are confident will report favourably on us.

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