Canada Trust

Canada Trust

Canada Trust was established in 1864 in London, Ont to acquire savings deposits to fund mortgage lending, with trust services added later. Several branches were opened in the Prairies in the late 1800s to funnel surplus eastern savings in the form of mortgages to western farmers and developers to finance western development. After World War II the company focused on mortgage lending in cities and on lending to corporations investing in plants and equipment. In 1959 it became the first trust company to sponsor a MUTUAL FUND. Subsequently, it has became a leader in developing and providing a wide range of personal and business services including deposit-taking, lending, mutual funds, financial planning, investment management, stock brokerage and insurance.

In the late 1990s, Canada Trust was the largest trust and loan financial institution in Canada, based on total assets and was a 100% owned subsidiary of CT Financial Services Inc, 98% of whose common shares were owned by Imasco Limited. The Trust and Loan Companies Act requirement of 35% public ownership was satisfied by the issue of preferred shares with a provision for voting rights.

In 2000, Canada Trust was acquired by TD BANK FINANCIAL GROUP in an $8 billion transaction. The addition of Canada Trust's more than 400 branches helped the newly renamed TD Canada Trust become Canada's largest retail banking network at that time.

See alsoBANKING; STOCK AND BOND MARKETS; TRUST COMPANY.