Standing Senate Committee on National Finance (NFFN) (May 28, 2024)
ANNEX D: Media summary of high-profile Budget 2024 items

Summary

Media coverage of Budget 2024 as it relates to FCAC was focused on the agency’s new role as the regulator for consumer-driven banking (open banking). Some media mentioned the Budget’s proposed limits on NSF fees and other bank fees, as well as its low-cost/no-cost accounts measures. Media coverage of the Canadian Mortgage Charter highlighted that the government may make the housing crisis worse by improving access to homeownership without offering more supply.

The tone of the coverage is neutral and factual.

Open/ Consumer driven banking

Media coverage of the open/consumer-driven banking measures included in Budget 2024 focused on the following angles:

• A reminder of the history of open/consumer-driven banking in Canada with mention of the very slow pace followed by the Canadian authorities as well as the accumulated delays in the implementation of a framework.
  • Open banking could spur competition, but fintechs say Canada's moving too slowly | CBC News
• The majority of reactions from Canadian fintechs were positive, with several stakeholders reporting the Budget news would have a positive impact on the competitiveness of the sector.
  • Financial consumer agency to oversee new open banking system
  • What open banking means for Canada's saturated banking market
• A report on the next legislative steps towards the adoption of a legislative framework. The media reported on the progress of Bill C-69 – also known as the Budget Implementation Act, 2024 – as well as another bill expected this fall during the Fall Economic Update.
  • Second bill on open banking expected in the fall | Investment Executive

Mortgage Charter

There was no substantial coverage of Budget 2024’s measures pertaining to the Canadian Mortgage Charter. No major mention was made of FCAC’s Mortgage Guideline either.

• Access to homeownership measures. Observers interviewed in the media pointed out that the government was indeed facilitating access to homeownership with these measures without solving the problem of the quantity of available properties and risking at the same time increasing prices.
  • Trudeau government to loosen RRSP, mortgage rules as housing shortfall swells
• 30-year amortizations. The increase in amortization from 25 to 30 years has also been criticized as more interests will be paid by mortgage holders.
  • Ottawa to allow 30-year mortgages for first-time home buyers

NSF/Bank Fees

The media coverage on the cap on NSF Fees was positive as the measure was painted as a good thing for vulnerable consumers. One media mentioned that it could somehow limit banks ‘revenues.

• Cap on Overdraft Fees Poised to Dent Revenue at Canadian Banks - BNN Bloomberg
• Budget pushes measures on open banking, lower fees forward, but timing unclear - BNN Bloomberg
• Federal budget 2024: A personal finance report card