What is the difference between Schedule I, II and III banks in Canada?
The schedule describes a bank’s ownership and legal form under the Bank Act. Schedule I banks are domestic, Schedule II banks are Canadian subsidiaries of foreign banks, and Schedule III are foreign bank branches. Almost all Schedule I and most Schedule II banks are CDIC members; no Schedule III branch is. Full-service branches generally can’t take deposits under $150,000.
Schedule I: domestic banks
Banks incorporated in Canada that are not subsidiaries of foreign banks — from the Big Six to small digital banks. Since federal credit unions are continued under the Bank Act, OSFI lists them here too. Almost all are CDIC members. See all Schedule I banks.
Schedule II: foreign bank subsidiaries
Canadian-incorporated banks controlled by foreign banks, such as Citibank Canada, ICICI Bank Canada or UBS Bank (Canada). They operate under the same Bank Act rules as domestic banks; most are CDIC members, though a few don’t take retail deposits. See all Schedule II banks.
Schedule III: foreign bank branches
Branches of foreign banks authorized to do business in Canada without setting up a Canadian subsidiary. OSFI distinguishes full-service branches, which generally may not accept deposits under $150,000, and lending branches, which may not take deposits at all. None is a CDIC member. Their customers are mostly corporations. See all Schedule III branches.
| Schedule I | Schedule II | Schedule III | |
|---|---|---|---|
| Incorporated in Canada | Yes | Yes | No — a branch of a foreign bank |
| Owned by | Canadian shareholders or members | A foreign bank | A foreign bank |
| Retail deposits | Yes | Usually | Full-service: generally only $150,000+; lending: none |
| CDIC member | Almost all | Most | None |
Does the schedule change my deposit insurance?
Not directly. CDIC coverage depends on whether the legal entity is a CDIC member, not on its schedule. In practice almost all Schedule I banks and most Schedule II banks are members, and no Schedule III branch is. So the schedule is a quick clue, and the CDIC member directory is the final answer.
Decision table: what you see and what it means
| What you see | What it usually means | What to check |
|---|---|---|
| A Canadian-owned bank, from a Big Six bank to a small digital bank | Schedule I | That the exact legal name is a CDIC member |
| A Canadian bank owned by a foreign bank | Schedule II | CDIC membership — a few don’t take retail deposits |
| A foreign bank’s “Toronto Branch” or “Canada Branch” | Schedule III | Not CDIC insured; full-service branches generally can’t take deposits under $150,000 |
| A federal credit union | Listed by OSFI with the Schedule I banks | CDIC coverage of $100,000 per category |
| An app or company that isn’t on OSFI’s list | Not a bank | Which member holds your money — see fintechs vs banks |
Who decides which schedule a bank is on?
The Bank Act. Section 14 puts every bank formed under the Act that is not a subsidiary of a foreign bank in Schedule I, and every bank that is a foreign bank subsidiary in Schedule II, along with the province of its head office. The schedules must be updated after events such as an incorporation, amalgamation, name change or change in foreign-subsidiary status. If either schedule changed during the year, the Superintendent of Financial Institutions must publish the full updated schedule in the Canada Gazette within 60 days after year-end.
Schedule III works differently. It lists authorized foreign banks: foreign banks allowed by an order under the Bank Act to do business in Canada through a branch, without a Canadian subsidiary.
Can a company call itself a bank if it isn’t one?
Generally, no. Under section 983 of the Bank Act, an entity other than a bank that adopts or keeps a name, domain name or identifying mark that includes the word “bank”, “banker” or “banking” without legal authority commits an offence. The Act and its regulations set out exceptions, so a name alone proves nothing either way. If a financial company uses the word, look it up in the directory.
Why are the biggest banks owned by so many shareholders?
Because the law requires it. Under section 374 of the Bank Act, no person may be a major shareholder of a bank with equity of $12 billion or more. A major shareholder is a person who, together with entities they control, owns more than 20% of a class of voting shares or more than 30% of a class of non-voting shares. That is why the largest Schedule I banks are widely held. Smaller banks face different ownership rules and can have a controlling owner — for a Schedule II bank, that owner is a foreign bank.
Check any bank in three steps
- Find the legal name
It appears on your account agreement, statements and the website’s legal page. A brand name such as an online division is not on any schedule; the legal entity behind it is. - Find it on OSFI’s list
The directory shows each bank’s schedule from OSFI’s official list. - Confirm CDIC membership
Search the CDIC member directory, which also lists the trade names each member uses.
Common mistakes
- Treating the schedule as a safety rating. It describes ownership and legal form, not financial strength.
- Assuming a foreign bank’s Canadian branch is CDIC insured. Schedule III branches are not members.
- Assuming every well-known foreign name in Canada is a Schedule III branch. Many are Schedule II subsidiaries — Canadian companies — and most of those are CDIC members.
- Splitting money between two brands of the same bank and expecting two limits. Brands share their member’s limit.
Where trust and loan companies fit
Not every deposit-taker is a bank. OSFI also regulates federal trust and loan companies, many owned by banking groups, and many are CDIC members in their own right. They are listed in the directory.
A name on a building isn’t a schedule. The directory shows the exact legal entity OSFI lists.
What this means for you
For everyday banking, the schedule is a starting clue, not the answer. It describes ownership and legal form, not financial strength. What protects your deposits is whether the exact legal entity holding them is a CDIC member.
- Before you deposit anywhere new, find the legal name on the account agreement, your statements or the website’s legal page, then confirm it in the CDIC member directory. A brand name is not on any schedule; the entity behind it is.
- If the name ends in “Toronto Branch” or “Canada Branch”, you are probably dealing with a Schedule III foreign bank branch. None is a CDIC member, and a full-service branch generally can’t take deposits under $150,000, so it is rarely an option for personal savings.
- If a well-known foreign name offers you an account, check whether it is a Schedule II subsidiary. Those are Canadian companies and most are CDIC members, but a few don’t take retail deposits.
- If a company uses the word “bank” but isn’t on OSFI’s list, don’t treat it as a bank. Look it up in the directory and find out which member actually holds your money — see fintechs vs banks.
- If you are offered a deposit by a trust or loan company, look that up too: many are CDIC members in their own right.
Once you know the member, keep each insurance category under the limit there, and remember that two brands of one bank share one set of limits. The deposit insurance calculator adds it up for you.
Frequently asked questions
What is a Schedule I bank?
A bank incorporated in Canada under the Bank Act that is not a subsidiary of a foreign bank. All Big Six banks are Schedule I.
Can I open an account at a Schedule III bank?
Rarely as an individual. Full-service foreign bank branches generally can’t accept deposits under $150,000, lending branches can’t take deposits, and none are CDIC members.
How many banks are there in Canada?
OSFI’s list dated October 1, 2026 has 34 domestic banks (including four federal credit unions), 15 foreign bank subsidiaries and 29 foreign bank branches.
Is a bank’s schedule a measure of how safe it is?
No. The schedule shows who owns the bank and how it is set up. For deposit safety, check CDIC membership and keep each category under the limit.
Can a business use the word “bank” in its name?
Generally only if it is a bank or is authorized by law. Section 983 of the Bank Act makes unauthorized use an offence, with exceptions set out in the Act and regulations.
Can one person own a big Canadian bank?
No. The Bank Act bars anyone from being a major shareholder (more than 20% of a voting class or 30% of a non-voting class) of a bank with equity of $12 billion or more.
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