TORONTO, Sept. 14, 2026 /CNW/ -- As Canada seeks massive new investment in strategic industries, the Canadian Forum for Financial Markets (CFFiM)/Forum Canadien des Marchés Financiers (FCMFi) paper authored by Thomas Kalafatis, Too Big to Challenge? Has Canada's Big Bank Model Killed the Geese that Lay the Golden Eggs?, considers strengthening the financial-market structure that turns capital into growing Canadian companies.

Canada's largest banks are credited with providing decades of economic stability. What if there is too much of a good thing? Has the bet size on stability exceeded the payoffs, creating risks around inflexibility?

This paper explores a structure that delivered substantial benefits to Canada and by doing so, has, over time, produced incentives that no longer fit the critical function equity capital market play in financing the next generation of Canadian companies.

The paper also recommends effective mechanisms for enhancing market incentives for ownership and reinvestment. It considers the carve out of equity capital-markets activities, including investment banking, into independently managed, Canadian-headquartered businesses through domestic and foreign institutional investment, with continued involvement by, and to the benefit of, Canada's largest banks.

As Canada is focused on attracting investment, paper raises equally important considerations to ensuring Canada has the capital-market capacity to transform that investment into Canadian enterprise.

"The objective is a stronger ecosystem capable of financing successful Canadian companies" said Laura Paglia, President and CEO of CFFiM.

About the Author:
Thomas Kalafatis
Managing Partner, Hullwright Advisors

Mr. Kalafatis is currently Managing Partner of Hullwright Advisors. Previously, he was CEO & Managing Partner at Independent Trading Group (ITG) Inc., Managing Director & Global Head, Equity Execution and Prime Services Group, at CIBC Capital Markets. He was also Vice-President, Sales & Trading, TSX Group, and held roles in Corporate Finance in New York City for Stern Stewart & Co.

About CFFiM

The Canadian Forum for Financial Markets (CFFiM)/Forum Canadien des Marchés Financiers (FCMFi) is dedicated to advancing proposals that foster healthy, competitive financial markets and a resilient Canadian economy.

SOURCE Canadian Forum for Financial Markets