Canadian Banks Mobilize for Preservation of Endangered Species: The Middle Manager

By Clarke, David | American Banker, July 30, 1984 | Go to article overview

Canadian Banks Mobilize for Preservation of Endangered Species: The Middle Manager


Clarke, David, American Banker


MONTREAL -- Canadian bank management talent has been at a premium since the 1980 Canadian Bank Act opened up the country to foreign banks.

To their annoyance, Canadian-owned banks found their middle management ranks being depleted as 58 American and other foreign banks fished in domestic waters for experienced personnel to complement top management imported from abroad.

Foreign banks now face the prospect of opening up more branches and hiring new staff to capture the larger market share that the proposed liberalization of their own industry will make possible. A bill is before the Canadian Parliament to open up the Bank Act once more, and double the foreign bank asset ceiling to 16% of the domestic bank's Canadian assets.

The expected escalation of the competition for scarce human resources focuses attention as never before on Canadian bank management development programs and policies.

Traditionally, middle and upper echelon positions in Canadian banks have been filled with high school graduates -- often as not from small towns -- who began long apprenticeships with banks and then further upgraded their skills with internal training programs and the occasional spell at an outside educational institution.

Loyalty to and long service with one bank are the hallmarks of the career of this type of executive, who fills many of the top spots in Canadian banking. A notable exception is American-born and trained William Mulholland, chief executive officer of the Bank of Montreal.

The effectiveness of this traditional type of executive has been hard to judge, for until recently there were few other Canadian prototypes with which to compare. The development of leading Canadian banks into institutions with global scope is a positive indicator. Canadian banks do compare favorably with American banks.

For example, share prices of major American banks dropped 23% between Jay. 1 and June 11, 1984, according to the Dow Jones News Service. Meanwhile, a survey of second quarter profits of major Canadian banks conducted by the Toronto Globe and Mail "Report on Business" showed Canadian banks down only 11%.

Among Canadian-owned banks, the Toronto-Dominion Bank had the highest return on equity at 17%, and the highest return on assets at 84 cents in profit for each $100 in assets.

Graduated Wanted

Whatever the current performance of the major Canadian banks, all banks operating in Canada are finding that, in the face of increasingly sophisticated competition using the latest technology, relying on the apprenticeship system no longer suffices. As entry-level requirements increase, however, banks find that they are encountering problems with the Canadian educational system.

Canadian business schools graduate only half the numbers relative to the population of the country as American schools do. Furthermore, the option of concentrating on financial services management within an MBA program is not available at any Canadian university.

The root of the problem is that salaries offered by Canadian universities are not competitive, and the supply of qualified business instructors lags behind demand. With some 300 business school teaching positions vacant, generally strict rules limiting the number of foreign professors who can teach in Canadian universities have been relaxed, but to little avail.

"We should be graduating twice as many to be in the same ratio as the United States," said Urban Joseph, executive vice president of human resources at Toronto-Dominion Bank. "Still, there are several very high quality schools with MBA programs. If you zero in on those, and if you really have a good selection process, your chance of getting the top 25-30% is very high. We also recruit at American universities and there is not much difference when you are in that top part of the class."

For Mr. Joseph, the lack of bank or financial services management training at Canadian universities ". …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Canadian Banks Mobilize for Preservation of Endangered Species: The Middle Manager
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.