Executive Summary The City of Toronto is recognized around the world as Canada s national centre for financial services. Toronto is home to the headquarters of Canada s five largest banks and to approximately 80 per cent of the headquarters of foreign banks operating in Canada. The Toronto Stock Exchange is the largest exchange in Canada. However, the financial services sector is experiencing a period of instability as forces of change with respect to globalization, regulatory changes, consolidations, and advances in technology change the entire context of financial services throughout the world. Recognizing the importance of the cluster and the potential threats from outside forces, the Economic Development Division commissioned a review of the cluster.
Financial services contribute significantly to the nation s total exports, GDP and employment.
Ontario is the only province with a trade surplus in financial services with inter-provincial trade expanding at an annual growth rate of 7 per cent since 1992. Quebec, Alberta and British Columbia are Ontario s biggest importers of financial services. Given that the majority of financial service sector activity takes place in Toronto, the City s role in the national and provincial economies is critical. Toronto has a concentration of 1,700 financial services firms. Employment in the financial services sector has grown steadily throughout the period between 1983 and 1999.