Fed approves Bank of Nova Scotia bid to acquire Maple Financial Holdings
The US Federal Reserve (Fed) approved an application from The Bank of Nova Scotia, of Toronto, Canada, to become a bank holding company through the acquisition of Maple Financial Holdings, Inc., based in Dallas, Texas.
The deal gives Scotiabank indirect control of MapleMark Bank, of Tulsa, Oklahoma, once the transaction closes under the terms set out by the Fed’s Board of Governors.
The approval was announced on Thursday and takes effect at 4:30 p.m. EDT, according to the Fed’s statement.
By becoming a bank holding company in the United States, Scotiabank would gain a regulatory structure to oversee its US banking operations, including the newly acquired MapleMark Bank, under Fed supervision.
Why it matters for markets: Regulatory approvals of cross-border bank acquisitions like this one can signal continued consolidation in US regional banking and expanded US footholds for large Canadian lenders such as Scotiabank, a factor some watch in bank equities and in USD/CAD given closer financial ties between the two countries.
Source: Federal Reserve (press)