New regulatory approaches should be considered by Ottawa in order to achieve its aim of supporting smaller lenders.

That’s the view of a C.D. Howe report by John Jason which calls for the regulatory framework for small banks and perhaps the entire financial sector should be reconsidered.

In “Swimming with Whales: How to Encourage Competition from Small Banks,” he highlights that just 2 per cent of the banking assets in Canada are controlled by small to medium sized domestic financial institutions. This is compared to 93 per cent for the big banks, 54 per cent is controlled by the three largest.

Jason writes in his report that regulatory burdens, capital requirements and disruption from FinTech and other non-regulated challengers are all concerns for Canada’s smaller lenders.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

More market watch: