Canadian Securities Course (CSC) Practice Exam

Which type of banks can perform the same activities as domestic banks but are foreign-based?

1. Schedule I banks

2. Trust company

3. Integrated firms

4. Schedule II banks

The correct answer is: Schedule II banks

Schedule II banks are considered foreign banks that are authorized to conduct the same activities as domestic banks in Canada. The incorrect choices are A, B, and C because these are type of banks that are not foreign-based. Schedule I banks are major banks which are known as domestic banks that are authorized to accept deposits, give loans, and provide other financial services to the public. Trust company bank is a financial institution that manages assets for clients in a fiduciary capacity, such as property, stocks, bonds, and real estate. An integrated firm is a company that operates in different markets and offers various services within those markets. Therefore, Schedule II banks are the only type of banks that can perform the same activities as domestic banks while being foreign-based.