Banks seek capital reduction under regulator

Summary#

This Gazette notice (published October 24, 2026) records three companies saying they will apply for regulator approval to reduce the stated capital of their common shares. The notices cover The Bank of Nova Scotia Trust Company (up to Can$100,000,000), National Trust Company (up to Can$70,000,000) and VersaBank (amount tied to a recent sale, not stated). Publication does not mean approval — each reduction still needs sign‑off from the regulator.

What it does#

• The Bank of Nova Scotia Trust Company

  • A sole‑shareholder resolution passed on October 7, 2026 would allow the company to reduce stated capital for its common shares by up to Can$100,000,000.
  • The company says its Chief Financial Officer will decide the exact amount and timing.
  • The company will apply to the Superintendent of Financial Institutions (Canada) under the Trust and Loan Companies Act (Canada) for approval.

• National Trust Company

  • A sole‑shareholder resolution passed on October 7, 2026 would allow a reduction of stated capital for common shares by up to Can$70,000,000.
  • The Chief Financial Officer will decide amount and timing.
  • The company will apply to the Superintendent of Financial Institutions (Canada) under the Trust and Loan Companies Act (Canada) for approval.

• VersaBank

  • A shareholder resolution passed on September 16, 2026 would reduce stated capital by an amount equal to the “Sale Consideration” from VersaBank’s sale of its shares in VersaHoldings US Corp to Versa Bancorp (the sale was in a Reorganization Agreement dated August 24, 2026).
  • The Sale Consideration is a promissory note equal to the shares’ fair market value; no dollar figure is given in the notice.
  • The reduction is subject to written approval from the Superintendent of Financial Institutions (Canada) under the Bank Act (Canada) and to the bank’s CFO being satisfied that the cut would not breach certain regulatory rules.

• All three notices say the regulator’s normal review and discretion will determine whether approval is granted.

Who's affected#

• The primary beneficiaries named in the notices are the shareholders:
  • the sole shareholder for The Bank of Nova Scotia Trust Company and National Trust Company, and
  • the shareholders of VersaBank.
• The notices will be reviewed by the Superintendent of Financial Institutions (Canada) (the federal regulator).
• The notices do not say whether customers, depositors, creditors or other parties will be affected. It is unclear from the notices whether there will be any impact on those groups.

Why it matters#

• If approved, up to Can$100,000,000 and Can$70,000,000 could be returned to the trust companies’ sole shareholder(s). That is a direct transfer of capital from the companies to shareholders.
• For VersaBank, the reduction ties to the sale of a U.S. holding; the exact amount depends on the agreed fair market value and is not provided in the notice.
• Reductions of stated capital change how much capital a company reports as belonging to shareholders. That is something the federal regulator reviews to make sure the institution stays compliant with safety and capital rules. Approval is not automatic.