Street Capital applies to become Schedule I Chartered Bank | General financial discussion | Discussion forum

According to The Canadian Press, Street Capital Financial Corp., a mortgage originator and holder of Canadian mortgages totally nearly $10 billion, is seeking to become a Schedule I Chartered Bank under the name "Street Capital Bank of Canada". It's expected to be a long process though, with the review process more stringent due to stricter capital requirements and Street, which is a subsidiary of Counsel Corporation, expects it to take at least two years. One need only look at ResMor Trust Company's – or Rogers Communications' – bid(s) to try and become Schedule II and I banks, respectively, as proof of this!

I doubt if they'd offer free chequing accounts, but at a minimum, I'd definitely see them offering GICs (either directly, through deposit brokers or through both channels) and maybe high-interest savings accounts, in order to improve their capital position and diversify their funding sources.

It's also possible they could offer an "all-in-one" chequing account/HELOC/mortgage account as these are increasingly popular in the marketplace.

From the article:

TORONTO – Street Capital Financial Corp., a subsidiary of Counsel Corp. (TSX:CXS), plans to apply to become a federally regulated Schedule 1 bank, the company said Wednesday.

The move would allow Street Capital, a residential mortgage lender, to expand its offerings to include other consumer lending and related services.

The change requires approval by the Office of the Superintendent of Financial Institutions and Finance Minister Jim Flaherty.

Counsel acquired Street Capital in 2011.

The company said it expects the application process will take at least two years.

If approved, the bank would carry on business in Canada under the name of Street Capital Bank of Canada.

Street Capital had $9.5 billion in mortgages under administration at June 30.