Canadians are confronting a tremendous amount of change. It is inescapable — whether it is new geopolitical realities, the power of artificial intelligence or trade and tariff disruptions. Canadians understand that they must adapt, take action and adjust to this new reality. Families, businesses and policymakers not only want to understand how to protect themselves from risks, they want to identify opportunities, and are willing to innovate in order to do so. The good news is that Canada and Canadians are resilient and action-oriented in the face of all this change.

The country has been in this situation before and rallied to take action: whether it is construction of a national railway, the mobilization of hundreds of thousands of soldiers during the World Wars or rebuilding after natural disasters such as wildfires, hurricanes, tsunamis, flooding and ice storms. These are all instances where Canadians rose to the challenge.

The Canadian Bankers Association (CBA) and our over 60 members see this mindset taking hold. On the ground, banks are helping families manage their finances and small businesses explore new markets and make their supply chains more resilient. And in conversations with policymakers, making recommendations and providing support to guide the economy through these difficult times.

This is why the CBA released Banking on a stronger, prosperous, more connected, Canada ̶ recommendations that if fully implemented could increase economic output per worker by 12%.

The Canadian banking sector has an almost two-century long history of supporting Canadians through difficult times whether they be droughts, depressions, wars or pandemics. This has led to Canada’s banks high levels of trust amongst their customers, higher than any other banking system in the industrialized world.

Because of the federal structure of the Canadian banking sector, banks have been able to leverage the strengths of the entire country to support the national economy and provide a consistent and wide range of products and services, no matter where Canadians reside. Banks are able to operate in every corner of the country to finance projects, manage savings and provide advice. This has made the system world-renowned for its strength, stability, safety and service.

Across the Canadian economy, business and consumers have to contend with a range of conflicting and overlapping regulatory barriers which, if removed, can lead to more consumer choice, greater affordability through competition, higher productivity through larger-scale operations, and a more resilient and connected national economy. An analysis by the McDonald-Laurier Institute estimated that removing internal trade barriers could boost GDP by up to 8% or $200 billion annually. That’s equivalent to $5,100 per worker. It would also grow government revenues by about $15 billion annually.

Just as banks provide the financial backbone to support Canada’s economy, large‑scale infrastructure projects can provide the physical backbone our economy needs to thrive. These nation‑building investments help strengthen connections across regions, improve access and opportunity, and support long-term growth. These projects include expanded digital networks, a connected east‑west electricity grid, and improved infrastructure in the Far North. In order for banks to contribute to building this infrastructure, an examination of the amount of capital required to set aside for financing is needed. Capital requirements can and do influence credit availability and, by extension, business investment. Every dollar in capital supports over $7.50 in credit, so small changes in bank capital requirements can have a significant impact on credit availability and price.

The financial regulatory system must also be examined. While banking is federally regulated, other parts of the financial system must contend with a multiplicity of financial regulators. There are 44 different federal and provincial regulators and self‑regulatory organizations in Canada addressing prudential and market conduct regulation. Improvements must be made to make the financial regulatory system more consistent across the competitive landscape and efficient in meeting its regulatory objectives to ensure it is effective, compliant and helps to foster productivity and economic growth.

The tax system can also play an important role in encouraging investment, rewarding entrepreneurship, and attracting and retaining top talent. With global competition increasing, changes in U.S. tax policy, and tariffs, Canada must ensure its overall tax approach remains competitive and sustainable. The federal government should look at reforms to reduce complexity, eliminate distortions like sector‑specific taxes, and remove disincentives to saving and investing.

We are at a critical moment in our nation’s history where Canada must adapt to thrive. Fortunately, Canada’s banking sector has a long history of helping families, businesses and governments get through uncertain times. Breaking down interprovincial trade barriers, large-scale infrastructure projects, examining the financial regulatory system and reforming the tax system are all initiatives that can contribute to this occurring. It’s up to all of us to do so.