Canadian Imperial Bank of Commerce CIBC

The largest merger of two chartered banks in Canadian history happened on June 1, 1961 - The Canadian Bank of Commerce (established 1867) and the Imperial Bank of Canada (established 1875) merged to form the Canadian Imperial Bank of Commerce (CIBC). Its history spans nearly two centuries and is full of adventure and enterprise.

Establishing Foundations, 1867-1895

The Canadian Bank of Commerce opened for business on May 15, 1867 in Toronto. The head office and main branch were located on the corner of Yonge and Colborne streets, in what would become Toronto's financial district. The Honourable William McMaster, a prominent Toronto businessman and philanthropist, was the principal founder of the bank and its first president. Concerned about Montreal's influence over the economy of Upper Canada, McMaster founded the bank mainly as competition for the Bank of Montreal. An aggressive businessman, he rapidly expanded the bank and its network of branches; by 1874 it had 24 branches, making it the largest bank headquartered in Ontario.

The Canadian Bank of Commerce Head Office, 1867

The Imperial Bank of Canada opened in Toronto on March 18, 1875. Its original premises were located at 18 Toronto Street, not far from The Canadian Bank of Commerce. Henry Stark Howland, previously vice-president of The Commerce, was the principal founder and first president of the new bank. Having a different philosophy than McMaster, Howland had resigned from The Commerce because he believed the rapid expansion of capital and branches was too risky. Still, he was not opposed to venturing into new territory in search of business.

Imperial Bank of Canada Head Office, 1876

In 1880, Howland and his vice-president made the long rail journey to Winnipeg, the capital of the new province of Manitoba. The men were impressed with the booming western town and arrangements were made to open a branch, their first outside Ontario. The Imperial continued its pioneer banking in the West, opening its first branch in Calgary in 1886 and then in Edmonton in 1891. During a time when many banks were disappearing, The Commerce and the Imperial were prospering. By the end of 1895, The Canadian Bank of Commerce had 58 branches and the Imperial Bank of Canada 18.

mperial Bank of Canada

Niagara District Bank, 1853-1875 The Niagara District Bank was established in 1853 and began operations in St Catharines. This was the fourth, and only successful, attempt to establish a bank to serve the citizens of the Niagara region. The bank carried on a steady but small business with just 3 branches and twelve employees. The Niagara District Bank merged with Imperial Bank of Canada on July 2, 1875. The Imperial Bank of Canada had opened recently and the purchase of the Niagara District Bank helped the Imperial establish a position in Ontario.
The Weyburn Security Bank, 1910-1931 The Weyburn Security Company was founded in 1902 to take over the operations of another company, which had been established to purchase 50,000 acres of land and engage in a large settlement plan. The Security Company soon began to offer financial services, such as banking, general insurance and mortgage loans. The business was successful; however, in order to compete with the chartered banks operating in the area, it obtained a bank charter under the name Weyburn Security Bank in 1911. While it continued to operate solely in Saskatchewan, the bank grew to include thirty branches. Had it not been for the Great Depression, it may have remained a separate entity. However, in 1930, it was no longer paying dividends and the directors were concerned for its continued solvency. On May 1, 1931, The Weyburn Security Bank merged with the Imperial Bank, which did not have any representation south of Regina.
Barclays Bank (Canada), 1929-1956 Barclays Bank (Canada) was established in 1929 by Barclays Bank Limited, a prominent British bank. Because Canadian law required that all banks operating in Canada be Canadian-owned, Barclays set up an investment company in Canada, which in turn provided the capital to start up the new bank. Barclays Bank (Canada) began operations in Montreal and soon after opened an office in Toronto. With the stock market crash and the ensuing depression, the bank suffered financially in its early years. More capital had to be acquired from London in order to open new branches in urban centres across Canada. World War II and the resulting foreign exchange restrictions made it difficult to obtain further capital from England. Consequently the bank decided to approach the Imperial Bank of Canada about a merger. The Imperial found this to be a favourable proposal and the two banks merged on February 1, 1956.