Canada’s financial history is filled with stories of resilience, innovation, and transformation. Over the years, several banks and credit unions across the country have risen to serve local communities, only to disappear through mergers, failures, or restructuring. Many of these institutions played a vital role in building regional economies, funding early industries, and supporting rural growth. However, as national banking networks expanded and regulations tightened, smaller and regional players struggled to compete. Here are 22 Canadian banks and credit unions that closed their doors.
Dominion Bank
Founded in 1869 in Toronto, Dominion Bank grew into one of Canada’s key financial institutions during the early 20th century. It served businesses and individuals across Ontario and Western Canada, offering personal, agricultural, and commercial banking. Known for its conservative management and community trust, the Dominion Bank weathered several financial downturns. In 1955, it merged with the Bank of Toronto to form the Toronto-Dominion Bank, now one of Canada’s “Big Five.” The merger combined complementary strengths and expanded the bank’s national reach, marking the end of Dominion Bank’s independent operations but setting the stage for TD’s global growth.
Bank of Toronto
Established in 1855 by a group of flour millers and merchants, the Bank of Toronto was one of Canada’s oldest chartered banks. It played a major role in financing the province’s industrial and agricultural expansion through the 19th and early 20th centuries. The bank maintained a cautious lending approach, focusing primarily on small businesses and local commerce. In 1955, the Bank of Toronto merged with the Dominion Bank, creating the Toronto-Dominion Bank. This merger combined the Bank of Toronto’s traditional banking discipline with Dominion’s broader expansion strategy, ending its century-long independent presence in Canada’s financial landscape.
Merchants Bank of Canada
The Merchants Bank of Canada, founded in 1861 in Montreal, focused on supporting trade and commerce throughout Quebec and Atlantic Canada. It built a strong regional presence by financing shipping, timber, and manufacturing industries. However, post–World War I economic instability and rising competition strained its balance sheet. In 1922, the Merchants Bank of Canada merged with the Royal Bank of Canada. This merger strengthened the Royal Bank’s dominance in Eastern Canada while ending the Merchants Bank’s six-decade history. Its closure reflected a wider trend of consolidation as smaller regional banks struggled to compete with national institutions.
Home Bank of Canada
The Home Bank of Canada was founded in 1903 and grew rapidly by promoting itself as a community-focused institution. It attracted thousands of small depositors across the country but suffered from weak internal controls and risky lending practices. By 1923, widespread loan defaults led to one of Canada’s worst banking collapses. The federal government intervened to protect depositors, resulting in new regulatory measures for the financial industry. The Home Bank failure severely damaged public trust in private banking and played a crucial role in shaping Canada’s modern banking oversight framework under the Bank of Canada’s creation later on.
Federal Bank of Canada
The Federal Bank of Canada, established in 1874, was a small but ambitious institution based in Toronto. It aimed to provide national banking services during a time when regional banks dominated. However, limited capitalization and aggressive lending left it vulnerable to market shocks. The economic downturn of the late 19th century led to its insolvency by the 1880s. Its closure highlighted the instability that plagued early Canadian banking before stronger regulations and consolidations occurred. Although short-lived, the Federal Bank’s failure contributed to later reforms that prioritized transparency and financial resilience in Canada’s chartered banking system.
Sterling Bank of Canada
Formed in 1905 and headquartered in Toronto, the Sterling Bank of Canada sought to compete with larger national banks by focusing on local businesses and individual customers. Despite initial growth, it struggled to expand beyond Ontario. Economic instability during and after World War I reduced its profitability. In 1924, it merged with the Standard Bank of Canada, which itself later became part of the Canadian Bank of Commerce. Sterling Bank’s closure represented the challenges small banks faced in maintaining competitiveness amid a rapidly consolidating financial sector. Its merger helped strengthen Canada’s evolving national banking network.
Northern Crown Bank
The Northern Crown Bank originated in Winnipeg in 1908 through the merger of the Northern Bank and the Crown Bank of Canada. It served the Prairie provinces during Canada’s western expansion, financing agriculture, real estate, and small businesses. However, fluctuating crop prices and postwar economic pressures weakened its position. In 1918, the Northern Crown Bank merged with the Royal Bank of Canada, which was seeking to expand westward. The merger provided the Royal Bank with valuable regional branches while marking the end of Northern Crown’s independent existence. It remains a key example of early Prairie banking consolidation.
Weyburn Security Bank
Founded in 1910 in Weyburn, Saskatchewan, the Weyburn Security Bank was a small institution created to serve local farmers and entrepreneurs during Western Canada’s growth period. Its operations were deeply tied to agricultural lending, which made it vulnerable to droughts and commodity price swings. The post–World War I recession and falling wheat prices strained the bank’s resources. In 1931, it was taken over by the Imperial Bank of Canada. Despite its short lifespan, the Weyburn Security Bank played a vital role in financing rural development in southern Saskatchewan before larger national banks absorbed regional operations during consolidation.
Farmers Bank of Canada
The Farmers Bank of Canada was founded in 1906 in Toronto with the goal of serving rural communities and agricultural producers across Ontario and the Prairies. It aimed to give farmers better access to credit but suffered from weak capitalization and poor management. By 1910, regulatory investigations revealed insolvency due to excessive unsecured loans. The bank failed in 1911, resulting in financial losses for thousands of small depositors. Its collapse contributed to Canada tightening banking oversight under the Finance Act. The failure underscored the vulnerability of smaller rural-focused institutions during an era of limited supervision and risky lending.
Sovereign Bank of Canada
The Sovereign Bank of Canada was established in 1902 in Toronto as a small chartered bank catering to local businesses and individual clients. It expanded rapidly across Ontario and Western Canada but faced severe financial strain following World War I. Agricultural downturns and bad loans eroded its capital base. In 1924, the Sovereign Bank merged with the Imperial Bank of Canada to strengthen financial stability. The merger allowed the Imperial Bank to expand into new markets while preserving parts of Sovereign’s branch network. The closure reflected the era’s pattern of consolidation as small banks struggled against national competitors.
Imperial Bank of Canada
Founded in 1875, the Imperial Bank of Canada grew to become one of the nation’s major chartered banks. It expanded aggressively through acquisitions, absorbing several smaller institutions such as the Sovereign Bank and Weyburn Security Bank. The Imperial Bank was known for financing industrial and commercial development throughout Canada. In 1961, it merged with the Canadian Bank of Commerce to form the Canadian Imperial Bank of Commerce (CIBC). This merger created one of the country’s largest financial institutions. While the Imperial Bank name disappeared, its influence continues through CIBC’s strong national and international presence today.
Bank of Hamilton
Established in 1872 in Hamilton, Ontario, the Bank of Hamilton was a significant regional player serving Ontario and Western Canada. It built a reputation for reliability and supported infrastructure growth during Canada’s industrial expansion. The bank survived the 1907 financial crisis and grew to over 100 branches by the 1920s. In 1924, it merged with the Canadian Bank of Commerce to improve competitiveness and branch reach. This merger reflected the trend of consolidation among medium-sized banks during the early 20th century. The Bank of Hamilton’s disciplined operations helped lay the groundwork for Canada’s modern commercial banking structure.
Bank of Western Canada
The Bank of Western Canada was founded in Calgary in 1913 to support the booming Prairie economy and the region’s growing population. It focused on agricultural financing, local business lending, and real estate development. However, World War I and subsequent economic instability hurt its operations. A combination of overextension and limited liquidity led to its collapse in 1914, only a year after opening. Its short lifespan demonstrated the challenges faced by regional start-up banks competing against established national institutions. The failure emphasized the need for stronger capitalization and regulatory oversight in Canada’s emerging western financial sector.
Bank of British North America
The Bank of British North America, chartered in 1836 in London, England, was one of the earliest banks to operate in Canada. It served key colonial trade hubs such as Montreal, Halifax, and Toronto, providing financing for merchants, exporters, and early settlers. The bank operated successfully for over 80 years but faced growing competition from domestic Canadian institutions. In 1918, it merged with the Bank of Montreal, strengthening the latter’s position as Canada’s largest bank at the time. The merger ended the Bank of British North America’s long-standing operations, marking a significant moment in Canada’s financial unification.
Banque Jacques-Cartier
Founded in 1861 in Montreal, Banque Jacques-Cartier primarily served Quebec’s French-speaking population and small businesses. It played an important role in local commerce, offering loans, savings accounts, and small enterprise financing. Financial difficulties during the late 19th century, including loan losses and limited capital reserves, weakened the institution. In 1899, it merged with Banque Provinciale du Canada, which later became part of National Bank of Canada. The merger preserved many of its branches while retiring the Jacques-Cartier name. Its legacy endures as one of the early Quebec banks that helped expand access to financial services for francophone communities.
Bank of New Brunswick
Founded in 1820 in Saint John, the Bank of New Brunswick was one of Canada’s earliest chartered banks and the first established in the Maritimes. It financed shipbuilding, trade, and local industry throughout New Brunswick’s early economic growth. By the late 19th century, competition from national banks and declining regional trade weakened its profitability. In 1913, the bank merged with the Bank of Nova Scotia, expanding Scotiabank’s reach in Atlantic Canada. The merger marked the end of a nearly century-long independent operation, highlighting the broader trend of regional banks joining larger national institutions to remain viable.
Eastern Townships Bank
The Eastern Townships Bank was established in 1859 in Sherbrooke, Quebec, to serve the growing agricultural and manufacturing sectors of the region. It developed a solid reputation for conservative banking and played a central role in regional development. However, increased competition and economic pressures during the early 20th century limited its expansion. In 1912, it merged with the Canadian Bank of Commerce, which sought to strengthen its Quebec presence. The merger brought improved financial stability and branch coverage but ended the Eastern Townships Bank’s independent operations after more than 50 years of service to local communities.
La Banque d’Hochelaga
La Banque d’Hochelaga was founded in 1874 in Montreal to provide financial services to French-Canadian businesses and individuals who were underserved by English-speaking banks. It grew steadily through the late 19th and early 20th centuries with a strong focus on small enterprise lending. Economic challenges during the 1920s prompted a merger in 1924 with Banque Nationale, forming Banque Canadienne Nationale (BCN). The merger created a stronger Quebec-based institution capable of competing nationally. In 1979, BCN later merged with the Provincial Bank of Canada to form the National Bank of Canada, continuing Hochelaga’s legacy in modern form.
Alberta Treasury Branches (Original Structure)
Alberta Treasury Branches (ATB) were established in 1938 by the Government of Alberta as a provincial alternative to federal chartered banks. The institution was created to provide local financial support during the Great Depression when many national banks withdrew from rural Alberta. Operating initially as a network of provincial branches, it offered basic savings and lending services. Over time, ATB evolved into a full financial institution. The original Treasury Branch structure was dissolved in 1997 when ATB Financial was established under a modernized framework. While its structure changed, the organization continues to serve Albertans under provincial ownership.
Citizens Bank of Canada
Citizens Bank of Canada was launched in 1997 as an online and socially responsible bank wholly owned by Vancity Credit Union. It focused on ethical banking practices, including community reinvestment and environmental sustainability. Despite its innovative approach, limited market share and rising competition from larger digital banks restricted growth. In 2009, Citizens Bank ended its retail banking operations, transferring its commercial and foreign exchange services to Vancity. Its closure reflected the challenges faced by small independent online banks in a rapidly consolidating financial environment, though its ethical banking principles influenced later community-based initiatives.
Coast Capital Savings Credit Union (Legacy Model)
Coast Capital Savings Credit Union was formed in 2000 through the merger of several smaller British Columbia credit unions, creating one of Canada’s largest cooperative financial institutions. It operated under a member-owned structure emphasizing local service and community reinvestment. In 2018, Coast Capital transitioned from a provincial to a federally regulated credit union, effectively ending its original legacy model. This change allowed it to expand nationally but marked the end of its earlier cooperative governance framework. The transition illustrated how modern credit unions adapt to regulatory and competitive changes while maintaining community-based financial roots.
Pacific & Western Bank of Canada
Pacific & Western Bank of Canada, founded in 1980 in London, Ontario, specialized in commercial lending, structured financing, and deposit services. It initially operated as a niche financial institution catering to government entities and corporations. In 2017, the bank rebranded as VersaBank to reflect its shift toward digital banking and cybersecurity-driven operations. The transformation ended the Pacific & Western identity but marked its evolution into one of Canada’s first fully digital chartered banks. Its closure as a traditional entity highlights how smaller institutions restructured to remain competitive in Canada’s rapidly changing financial technology landscape.
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