Canadian Commercial Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1975 |
| Defunct | 1985 |
| Headquarters | Edmonton , Canada |
| Products | Commercial banking services |
Canadian Commercial Bank (CCB) was a privately held wholesale commercial banking institution headquartered in Edmonton, Alberta, Canada, which collapsed in 1985. It was granted its parliamentary charter in 1975 and set up its main office in Edmonton.
History
Operations at the Canadian Commercial Bank commenced in July 1976, backed by capital of CDN$22 million. Between 1976 and 1982, the bank maintained profitability and frequently ranked within the upper quartile of Canadian banks. In 1982, it inaugurated a new corporate headquarters, known as the Canadian Commercial Bank Tower, located in Edmonton.
By early 1985, following substantial exposure to the real estate and energy markets, the bank faced insolvency due to increasing interest rates and a weakening Canadian dollar. The federal government intervened with a bailout package amounting to $255 million (equivalent to $ billion today) to stabilize the bank. Nevertheless, CCB terminated its operations on September 3, 1985. This event marked the largest bank failure in Canada’s history and was the first such collapse in six decades, soon followed by the downfall of the Northland Bank.
These failures led to demands for the resignation of Bank of Canada Governor Gerald Bouey. Subsequently, a Commission of Inquiry chaired by Supreme Court Justice Willard Estey examined both bank failures and published its findings in 1986.