GATINEAU (Québec), Competition Bureau
The Competition Bureau is consulting Canadians as it prepares to launch a market study into the state of competition in the lending sector for small and medium-sized enterprises (SMEs) in Canada.
SMEs account for more than 98% of Canadian employers. They drive economic growth by investing, innovating and putting competitive pressure on larger businesses.
Access to competitive financing is critical to enabling SME's success and growth. However, recent studies and observations have raised concerns about competition in the lending sector:
- Canada's lending sector is dominated by the big banks;
- New or smaller lenders appear to face barriers to entry and expansion;
- Comparing loan options and switching between lenders can be challenging; and
- SMEs face higher borrowing costs than larger firms and this gap is larger in Canada than in other OECD countries.
The findings of the Bureau's market study will inform our recommendations on how governments across Canada can improve competition, to the benefit of SMEs, the financial institutions seeking to lend to them, and the broader Canadian economy.
As a first step, the Bureau is inviting interested parties to review our consultation paper and share their views on the proposed terms of reference for the market study by October 3, 2025. This is an opportunity for Canadians to help shape the study's scope and methodology.
Following this consultation, the Bureau will publish the final terms of reference and officially launch the market study. The final terms of reference will also include details on how stakeholders can provide submissions during the market study.
