Canada took a critical step toward liberalizing its banking system Tuesday as a government-appointed task force recommended lifting restrictions on foreign financial institutions and allowing megamergers among Canadian banks.

"The report offers a thoughtful, outward-looking model and a good assessment of international finance trends and what they mean for participants in this important market," said Edward W. Russell, senior vice president for international government affairs at Chase Manhattan Corp.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

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