ATB Financial

Quick Facts

  • Established: 1938, Converted to Crown Corporation in 1997
  • Owner: Government of Alberta
  • Previous Names: Alberta Treasury Branches
  • Industry: Banking
  • Website: atb.com

Background

ATB Financial was setup during the depression for the purpose of bringing banking to Albertans, many of whom did not have access to very basic banking services.

As with most Government interference in the market, this concept had merit in the beginning. Since 1938, the banking industry in Canada has flourished, and between Canadian banks, foreign banks operating in Canada, Credit Unions, cheque cashing centers, and numerous other financial corporations, nearly all Canadians have access to basic banking services.

ATB Financial has modernized, offering many services which directly compete with private banks, while not having to worry about profit (mind you, they have been profitable of late).

The Privatize.CA Conclusion

Why is the so-called “Free Enterprise” Government in Alberta clinging to this sexagenarian relic? Why is a government-owned entity competing directly in a mature industry? They are not filling any particular “unmet need” that the private sector has not addressed. They are not operating in an underserviced niche area.

This is blatant Government interference with the free market. ATB Financial does not need to be Government owned, and therefore should be privatized as soon as possible.

One method of accomplishing this would be to transfer full regulation of the corporation so it falls exclusively under “The Bank Act”, as with most banks in Canada. This could be accomplished in tandem with rescinding of the “Alberta Treasury Branches Act” and its associated regulations. This would effectively make it a “regular” bank that happens to be owned entirely by the Government of Alberta. The shares could then be transfered to the Alberta Heritage Savings Trust Fund (Alberta’s surplus investment vehicle), as both the Government and the Fund are owned by the people of Alberta. Leave it to the management of the Fund to determine what to do with the corporation (presumably the fund, for the sake of diversification of investments, would sell all or part of the Bank, directly or through an Initial Public Offering (IPO).