Ottawa Caps NSF Fees At $10, Banks Unsure How They’ll Afford Third Lake House

Canada’s major banks are sounding the alarm after the federal government announced a new $10 cap on non-sufficient funds (NSF) fees, down from as high as $50, prompting urgent questions about how financial institutions will survive such devastating hardship.

Finance Minister François-Philippe Champagne said the measure, which took effect March 12, aims to help the more than one in three Canadians who pay NSF fees each year, particularly those living paycheque to paycheque.

Banks say they support affordability, in theory, but warn the policy could have “serious consequences,” such as slightly reducing the annual revenue they earn from accidentally punishing customers for briefly being poor.

“This is a challenging time,” said one banking executive while polishing a marble staircase inside a downtown headquarters. “If we can’t charge $50 for someone being $4 short on a phone bill, we may need to explore alternative revenue streams. Perhaps a $12 ‘account breathing fee.’”

The government estimates the cap will save Canadians $600 million annually.

Banks estimate it could cost them nearly two executive yachts.

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