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City of Toronto

"Toronto is witnessing heavy business investment activity, with a favorable exchange rate and an available, well-educated labor force paving the way," says Ron Wandel, manager, investment services, at the City's Economic Development Division. "Many U.S. cities do not have available labor at a reasonable cost to meet new investment requirements. As a result, more business executives are looking at Toronto for the first time, and they like the investment opportunities that the city has to offer."

The city, in fact, has seen several expansions over the last few years: Alcatel Canada (transport automation) added 110,000 sq. ft. (10,200 sq. m.) and 150 new jobs; Bell ExpressVu (satellite TV) added 25,000 sq. ft. (2,300 sq. m.) and Intercontinental Warehousing, has added 300,000 sq. ft. (27,800 sq. m.). A. Mantella & Sons (warehousing) built a new 250,000 sq. ft. (23,200 sq. m.) warehouse; IDMD Manufacturing added 100,000 sq. ft. (9,300 sq. m.); and Bayerische Landesbank of Germany is opening a new headquarters in the fall of 2000.

Bay Street, the heart of Ontario's financial sector, is gearing up for competition after the Federal Government enacted the most comprehensive changes to the banking industry in Canadian history in June of this year. The new Banking Act will allow foreign banks to operate branch operations without incorporating, and establish either a full-service or lending branch (though neither of these can engage in retail banking, defined as deposits under C$150,000. Foreign banks can continue to do this through a subsidiary operation). Full-service branches can take deposits greater than C$150,000, though lending branches cannot take any.

In addition, explains Mitsopulos at the MEDT, lending branches can only borrow from other financial institutions, and since deposits of Canadians are not at risk, this means lending branches have fewer regulatory requirements than full-service ones. "A healthy foreign bank presence means greater financing sources for Canadian businesses, and more borrowing options for Canadian consumers."