Orlando, Fla.-based Currency Exchange International, Corp. (TSX:CXI.S) has applied to continue its wholly owned subsidiary, Toronto-based Currency Exchange International of Canada Corp., as a new Canadian Schedule 1 bank.
Subject to approval of the application by the Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance, the new bank will be called “Exchange Bank of Canada” (EBC) in English and “Banque de change du Canada” in French, and will have its head office in Toronto.
CXI is in the business of providing a range of foreign currency exchange and related products and services in North America. Primary products and services include the exchange of foreign currencies, purchase and sale of foreign bank drafts and international traveler’s cheques, wire transfer payments, and foreign cheque clearing. The products are sold at a business-to-business level to resorts and attractions, as well as local, regional and national banks, that have international trade or clientele, and at a business-to- consumer level through the company’s wholly owned and affiliated retail outlets in the United States.
The objective of EBC is to expand current and future business opportunities and become a leading banker’s bank for foreign exchange products and services. Obtaining a Canadian bank charter affords CXI numerous advantages, among them it eventually expects to be able to bank with central banks, including the Bank of Canada and the U.S. Federal Reserve Bank, thereby obtaining a source of stable, cost-effective funds, collateral reductions with corresponding banks, and enhancing existing banking relationships.
Randolph Pinna, president, CEO, and director of the board, stated, “EBC will provide CXI’s current customers and potential customers additional comfort by having its correspondent relationship with a licensed specialty bank such as Exchange Bank of Canada, while providing the company with additional profit opportunities.”