U.S. President Donald Trump appeared to mistake the Bank of Canada for a commercial retail bank while discussing the decline in Canadian tourism and criticizing Canada’s banking regulations.

Speaking at an Oval Office event with travel industry executives, Trump claimed that Canadian banks operate in the United States while American banks are not allowed to operate in Canada.

“They basically don't allow banks of America to be in Canada,” Trump said, suggesting that Canada has several major banks operating in the U.S. while American banks are excluded from Canada.

However, the Bank of Canada is not a commercial bank serving everyday customers. It is Canada’s central bank and a Crown corporation responsible for monetary policy, including setting the country’s benchmark interest rate. It also provides banking and financial services to the federal government.

The Bank of Canada does not operate as a retail bank in the United States, and Canadians do not use it like a regular commercial bank to open personal accounts or conduct everyday transactions.

U.S. Banks Do Operate in Canada

Trump has repeatedly claimed that American banks are prevented from operating in Canada, but that claim is inaccurate.

Several major U.S. financial institutions have operations in Canada. These include JPMorganChase and Citibank, among others. Foreign-owned banks can operate in Canada under the country’s banking framework, including through Canadian subsidiaries.

However, Canada’s banking sector is highly concentrated, with six major domestic banks — Royal Bank of Canada, Bank of Montreal, Scotiabank, CIBC, TD Bank and National Bank — controlling the majority of banking assets.

Canadian-owned deposit-taking institutions fall under the country’s Schedule 1 banking category, while foreign-owned banks with Canadian subsidiaries are classified under Schedule 2.

Trump Criticizes Canada's Banking Rules

Trump’s comments reflect his broader criticism that Canada has benefited economically from its relationship with the United States while restricting American businesses.

Although U.S. banks face significant regulatory requirements and strong competition in Canada, American financial institutions are not completely barred from operating in the country.

The remarks have once again drawn attention to the differences between Canada’s tightly regulated banking system and the much larger U.S. financial market.