Canadian bank mergers hit the headlines earlier this week on the news that Bank of Montreal and Bank of Nova Scotia had called off their merger talks after receiving less than positive soundings from the Canadian Prime Minister's Office.
The Globe and Mail has managed to get hold of an internal memo from Scotiabank chairman and chief executive, Peter Godsoe, which says that he believes that 'mergers are inevitable in Canada, because they are permitted in legislation and because they can open up different growth opportunities'.
Godsoe admitted that 'it is possible that Scotiabank will someday be part of a merger with another Canadian or foreign financial institution.' Bank of Montreal chairman Tony Comper also echoed these sentiments. He has now said: 'Give us the right partner at the right time and the opportunity to execute our strategy more effectively on a broader scale, and of course we will give it serious consideration'.
For the time being, however, it is business as usual for both banks.