The federal government has started the process of merging two financing institutions into a single development bank, but it won’t say whether the single institution will result in job cuts for public servants. Last week’s federal budget announced plans to bring together the Business Development Bank of Canada (BDC) and Export Development Canada (EDC) into a new intuition. The government says the proposal will clarify mandates, reduce overlap and improve coordination across financing organizations. “The new institution will build on the strengths, expertise, and strong teams of both organizations to provide Canadian businesses with a more integrated suite of financial solutions from domestic growth through to international expansion,” the budget said. “A specially constituted Board of Directors will be mandated to oversee the transition, supported by further analysis and consultations with key clients and stakeholders. Existing products and services will be fully maintained throughout the transition.” Export Development Canada employees 2,200 employees and is headquartered in Ottawa, while Business Development Canada is headquartered in Montreal and employs 2,900 employees. CTV News Ottawa asked the Department of Finance whether the merger would result in job cuts. “The proposed combination of the Business Development Bank of Canada and Export Development Canada was announced in Budget 2026,” said an official in the Department of Finance. “Since the Budget was tabled, the government has begun working with BDC and EDC on the transition. Both organizations will continue to operate under their existing mandates, with current financing programs and services continuing during this process. More information will be disclosed in due course as the transition work progresses.” A spokesperson for Export Development Canada directed CTV News to an information section on its website about the proposed merger. “EDC will work proactively and constructively with the government and BDC to help actively shape and implement the merger,” EDC said. “EDC’s focus remains on helping Canadian exporters and investors succeed internationally. We know that it is crucial that our services to exporters, partners and investors remain seamless. Throughout the transition, we will continue delivering the equity, financing, insurance, market insights and connections that businesses have relied on for over 80 years to pursue global opportunities.” Export Development Canada says several elements of the proposed merger “remain to be defined” and “further decisions will need to be made” before it is approved. The Crown corporation notes EDC and BDC “already work very closely with one another,” and the two agencies bring “unique and complementary expertise and financial solutions that can better position Canada for success.” There is no mention of potential impacts for employees at the two Crown corporations in the information pages on the Export Development Canada and Business Development Bank of Canada websites. On its website, Export Development Canada (EDC) said it is Canada’s export credit agency and a Crown corporation “with a mission to strengthen Canada’s economy through global trade.” FinDev Canada is a subsidiary of EDC. The Business Development Bank of Canada (BDC) says its mission is to support Canadian entrepreneurs by “providing financing, capital and advisory services, with a focus on small and medium-sized businesses.”
