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Bank of Montreal

An exclusive insight of bank of Montreal

The bank of Montreal is on the list of the largest banks in Canada and also has an important place in the United States. It has got over 1200 branches all across North America, Europe, Asia, and America. This bank also owns the Harris Bancorp that is in Chicago and is the fourth largest bank of that place. 

Some other considerable subsidiary of Montreal bank is the investment firm BMO Nesbitt Burns which is an equity Trade Company and also CSFB direct Inc. that is a new-Jersey based company and comes under Montreal’s division of wealth management.  It has a joint venture with the Royal Bank of Canada, in which they together run Canada’s biggest credit card processing company and the joint venture is named Montreal solution Corp. They also offer around 30 types of different lines of business.

Perspective

This bank is among the oldest banks in Canada. It was founded in the year 1817 and has till now grown to have $238 billion assets, and nearly has got 32000 employees in Canada, the US, and around the world. It is the only bank till now that provides an entire range of financial services in their selected markets on either side of the Canada-United States Border.

Their strategies are based on three commitments-

  • Promote the well-being and also have respect for all the different cultures of the individual community they are doing their business.
  • Be the best in discipline, financial, and professional institutions and have risk management skills.
  • To provide the clients, not just financial products, but also custom made and knowledge-based solutions to help them in their financial problems.

Related history-

This is one of the oldest banks in Canada. It was founded by 9 people in the city of Montreal in the year 1817. The real name given to this bank was the Montreal bank. At that time it was established mainly for some business customers so that they could do trading in the city and in other places too. It uses to give its customers cash, a source for getting loans, a place to keep their money safe plus a foreign exchange facility too.

The bank also kept on growing as the country was growing. And in the meantime, it was declared to be the official bank of the Lower Canadian region (Quebec). In the year 1818, this bank started to spread itself outside from that place with the help of business associations of some other banks in Boston, London, and New York. While it was spreading across other regions it also built up offices in Quebec City and Kingston.

After the year 1822, the company changed itself from being a private company owned by a few numbers of people to a big public company that had over 144 shareholders. Simultaneously this was officially announced as the bank of Montreal. As it took over the city’s bank It got its first branch in Toronto in the year 1842. The province of Canada finally got its official banker for the government in 1864 that was the bank of Montreal and was now responsible for government operation financings.

In the year 1867, called the year of confederation the bank opened some new branches in Nova Scotia and also Brunswick. 

Post- confederation-

During the development of Canada after the period of Confederation, the bank gave more focus on trades included in railway, lumber, and also industries. The sudden increase in foreign trading in Canada was a great time for the Montreal bank and after that, it insisted they set up a new branch in New York City in the year 1870.

Because of the growth has done internationally they got a chance to get in the investment banking industries. In 1874, a bond was issued between England for Quebec. This lead to the fast growth of the company. Later on, the railway’s bonds were also sold by the bank and this was issued by the federal government.

As the banking industries were kept on growing so the Montreal bank associated with some other banks to make the Canadian banker association in the year 1891. 

Interwar and the great depression-

As soon as the war ended in the year 1918, Montreal bank took over the British bank of North America and its 79 branches. Its presence in the regions of western Canada kept on increasing because it purchased the British bank. Simultaneously, there was growing competition for deposits.  Montreal bank’s presence increased internationally as soon as it has opened new branches in France and Paris and bought the colonial bank later on. Inside Canada, it bought the Struggling merchants bank and this purchase added nearly 400 more branches.

21st century-

In the 21st century, the Montreal bank made many strategies to cope up with the pace of growth rate. The bank also initiated to increase wealth management operations.  To accomplish this they stared to merge many domestic and international firms. In the year 2001, they bought Toronto guardian group of funds ltd., and later on, it purchased more companies.  

Till 2018 wealth management component of this bank had contributed nearly 17 % of their total reported earning. In later years it expanded its acquisitions and added life insurance also. Just in the same year bank acquired the Canadian credit card franchise. In the next years also it purchased firms and companies and kept on rising itself and this is still kept on growing. 

Here was every information related to the Montreal bank. Starting from the history till now. It has taken over many banks and has grown internationally starting from nine persons owned bank in Montreal. It has now been spread across the world and has become a public bank instead of a private bank and has helped its many clients to set up business across the world. It is still on the rise. It has its headquarters in Canada itself, but has got several branches all across the globe and has thousands of employees. It has also taken over many firms and companies since it was started in the year 1817.