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Corporate Banking in Canada

RAROC profiles and pricing benchmarks for 3 Canada banks, sourced from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Banks tracked
3
Headquartered in Canada
Total corporate EAD
EUR 1.2tn
Combined exposure
Avg cost-to-income
50.8%
Operating efficiency
Avg corporate PD
1.90%
Probability of default

Overview

OpenRAROC tracks 3 banks headquartered in Canada with a combined corporate credit exposure of EUR 1.2tn. The average Canada bank in our dataset has a cost-to-income ratio of 50.8% and an average corporate probability of default of 1.90%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 7.48%.

Cheapest vs most expensive in Canada

On the standard sample deal, Royal Bank of Canada is the cheapest lender in Canada, requiring just 239bp to hit a 12% RAROC hurdle. The most expensive is Scotiabank at 261bp — a difference of 22bp on the same deal. For a EUR 25M facility, that's EUR 55,639 per year in interest expense.

All 3 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#BankC/IAvg PD LGDEADRAROCMin spread
1Royal Bank of Canada43.0%2.34%37.0%EUR 464bn7.70%239bp
2TD Bank55.0%2.09%32.9%EUR 420bn7.70%239bp
3Scotiabank54.5%1.27%36.6%EUR 284bn7.06%261bp
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FAQ: corporate banking in Canada

How many banks in Canada does OpenRAROC cover?
OpenRAROC tracks 3 banks headquartered in Canada, with a combined corporate credit exposure of EUR 1.2tn reported in their most recent Pillar 3 CR6 disclosures.
Which Canada bank has the tightest corporate credit pricing?
On a representative BBB+ EUR 25M 5-year term loan, Royal Bank of Canada requires the lowest minimum spread to clear a 12% RAROC hurdle (239bp), making it the cheapest lender in the Canada cohort on that specific deal.
What is the average cost-to-income ratio of Canada banks?
The 3 Canada banks in the dataset report an average cost-to-income ratio of 50.8% and an EAD-weighted average corporate probability of default of 1.90%.
How is RAROC calculated for Canada banks?
Each bank is priced on the same BBB+ EUR 25M 5-year term loan, using its own disclosed cost-to-income, effective tax rate, funding spread, and IRB-approach PD/LGD parameters. See the methodology page for the full formula.