Decisively halting Canada's march toward banking consolidation, Finance Minister Paul Martin has blocked two giant mergers that would have dramatically altered the country's banking structure.

Mr. Martin ruled Monday that Royal Bank of Canada's proposed merger with Bank of Montreal and Toronto-Dominion Bank's with Canadian Imperial Bank of Commerce would "lead to an unacceptable concentration of economic power in the hands of fewer, very large banks."

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.