TORONTO'S FINANCIAL DISTRICT

Since the mid-1950's when Canada's five largest banks began to establish headquarters in the city, Toronto has been the centre of Canada'a financial industry. It represents the largest sector of Toronto's economy, employing more than 230,000 people, most of whom work in the financial district.

 Royal Bank Plaza, Bay and Front Streets

     
Before beginning this blog post, I asked myself  "What role does the Financial District  play in the broader Canadian economy? And what are the differences between the financial industry in Canada and the US?" Obviously, these are difficult and complex questions.

Under the constitution, the federal government has sole authority over Canada's banks and has put in place regulations intended to ensure the soundness of its mortgages.  The five big Canadian banks tend to function as an oligopoly. They have similar fee structures in their retail operations, competing mainly on service quality. Unlike the US, Canada does not have numerous large and small banks, competing vigorously with each other and constantly innovating, especially in the area of investment banking. Until the financial crisis of 2008, Canada's banks may have been thought of as being over-regulated.

Another difference between the two countries is the availability of mortgage insurance provided by Canada Mortgage and Housing Corporation (CMHC) for all mortgages that cover more than 80% of the property value. Finally, in Canada, when an individual's mortgage has been foreclosed upon, the bank can go after his other assets. This provision tends to cause people to do whatever is possible to make their mortgage payments and avoid foreclosure. 

Recently, concerns have arisen about housing prices in Canada, particularly in some markets like Toronto and Vancouver. Questions are being asked, for example, about whether we are seeing a new relationship between housing prices and incomes, or if we are about to have a normal downward correction in the market, or if the housing market is going to crash in a manner recently experienced in the US. 

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The Financial District extends south from Queen Street to Front Street and east from Yonge Street to University Avenue.  I arrived there at 8:00 a.m. on Monday July 30th, 2012, and walked around all morning taking pictures. I began at the Go station on Front Street. Along with the subway's Yonge line, this is where most of the estimated 100,000 commuters who work in the financial district arrive for work.

Toronto's Go Station at 8:00 a.m.

Commuters Exiting the Subway at Union Station

Leaving the Go Station via Union Station, I walked up and out onto Front Street where one of Toronto's oldest and grandest hotels, the Royal York, is located.

City of Toronto Work Crews in the Street at the Royal York Hotel 

First, I walked west on Front Street, then turned north onto York. There were dozens of people everywhere making their way to work at this early hour. I headed west on Wellington towards the RBC Centre, a 43-storey 2009 structure located west of University Avenue. The building is owned and operated by Cadillac Fairview with the Royal Bank as its anchor tenant. The building is expected to use 50% less energy than what is required under federal regulations and has won an award for environmental sustainability

 RBC Centre on the Right with the CN Tower on the Upper Left

 RBC Centre at Street Level

The RBC Centre is located just west of what is customarily thought of as the Financial District.  It is connected to the PATH, the extensive underground pedestrian retail network.more

 RBC Centre Entrance

The PATH network is a 27 kilometer network of underground shopping and entertainment facilities that extends throughout Toronto's downtown.  Construction began in the 1960's.  Interestingly, as I discovered when I asked at the Bank of Montreal how to access the PATH, I was told that photography is not allowed due to security concerns. Nor is photography allowed within any of the banks in the district. 

The next buildings I wanted to see were located at King and Bay. At York Street I stopped to take a picture of the Tellus Tower. more

 Tellus Tower, an Environmentally Innovative Design

Continuing on my way, I passed an interesting sight: a very old church standing in front of modern glass-fronted buildings made for a nice contrast.

  

A third stop I made on my way to King and Bay was to go east of Bay Street on Wellington to see Brookfield Place.  This building complex, was formerly known as BCE Place. more

On the left, Brookfield Place, Formerly BCE Place

 Brookfield Place at Street Level

The first King and Bay building I was interested in was the Toronto Dominion Centre.

This complex, built between 1967 and 1991, consists of six towers and a pavilion in which approximately 21,000 people have their employment.

Next, I saw the north part of Royal Bank Plaza, a building created to be the new corporate headquarters of the RBC when the decision was made to move it from Montreal.  There are two towers that include 14,000 windows. more

Royal Bank Plaza Viewed from Front Street

Next, I looked for First Canadian Place on the northwest corner of King and Bay.  This is the headquarters of the Bank of Montreal. It is Canada's tallest skyscraper and the 15th tallest building in North America. more 

  Bank of Montreal at First Canadian Place

Just west of this building on King Street, I saw a lovely small park - such a gem amongst all the concrete and glass.

Park at First Canadian Place

Also at King and Bay is Commerce Court. more

 

 Commerce Court

From here I made my way east to King and Yonge where I was interested in Scotia Plaza. more The building has an attractive entrance which I photographed. Then, I turned my back to it and looked across the street at One King West. As a wire obscured my view, I backed up a few steps towards the entrance to Scotia Place, only to be approached by a security guard who informed me that, while I was allowed to take a photo of Scotia Place from the sidewalk, photographing One King West from the Scotia Place property itself was prohibited. I explained my concern about the wire. He seemed OK about it so I told him that he was in one of my photos and offered to show it to him. When he saw himself as a very small figure with his back turned, he smiled. He was a very nice man and I was glad that people like him were keeping Toronto safe.

 Entrance to Scotia Plaza

The final building on my list was One King West, located on the south side of King just west of Yonge Street.  This is a condo hotel that was added onto the Dominion Bank Building, a heritage structure from 1914.  The combination of old and new is made to look very attractive. more

 

 One King West at Ground Level

One King West, Upper View

This completed my tour of the Financial District. I have to say, I was very impressed with the quality and variety of the architecture. But,more than that, what struck me was the  immense scale of what has been achieved here.

Which brings me back to the questions that began this post: how stable are Canada's banks? can the large amount of debt in Canada be handled if there is a downturn in the economy? and how over-heated are the various housing markets? Far from being an expert in finance and economics, all I feel competent to do is to ask more questions:  Will the recent federal changes to the regulations governing mortgages be adequate to tame the housing market ,i.e. to stop the increase in prices and avert a crash? Have Canada's banks avoided approving a great number of mortgages for people who will be vulnerable to foreclosure in an economic downturn? and finally, How worried should we be about the Standard and Poors warning about the risks faced by Canada's banks in the current situation? more

NOTE ABOUT THIS POST:  If you would like to see the photos full screen right click on one and then click on "Open Link in a New Window".  Close the page to return to the blog.

ANNETTE IN TORONTO

 View of Downtown from Toronto Islands Ferry

A couple of days ago, when I opened this blog after a long time away, I realized that my last post was more than two years ago.  Since then, I've had my third Indian vacation and my first trip to the south of Italy.  I'll be traveling again in a month when my husband Paul and I head off to the Isle of Wight for a week and then to Germany for four weeks with side trips to Vienna and Prague. Then, in February and March we'll be in Hilton Head, South Carolina. This travel should give me a lot more to write about.

But while I'm at home in Toronto where I've lived for the past twenty years, I plan to blog about this city. I love Toronto, and I know it will offer plenty of interesting material.
Every year, as spring approaches, I've been telling myself that I will frequently get out of the house to explore the city. But so far my busy life has interfered with this plan. Now, I have a new brilliant idea: I realized that if I resumed my travel blog with Toronto as its focus, I would create an incentive to keep it going so as not to disappoint my followers  - assuming, of course, that some of these make an appearance.

And, there is also a second objective. After I had taken thousands of photos over the years, my husband Paul commented about one of the best, saying "even a blind squirrel finds a nut some of the time." I laughed at his comment, but it gave me a reason to aim for better quality. Now, as I embark upon a new journey with my blog, there will be an opportunity to practice what I've been learning over the past year as a new member of the Toronto Camera Club. Instead of blindly pointing and shooting, I will make an effort to think about what I want to achieve with each photo.
 
There are many aspects of Toronto that I would like to cover in this blog: people, both long-time residents and newcomers; artistic and cultural events; historic buildings and new architecture; political and other issues of importance to the community; and major events.
 
Of more interest, at least to me, would be the attributes of the city that make it unique. Toronto is not known for possessing one great landmark like the Sydney Opera House in Australia or the Statue of Liberty in New York City. Rather, I think of Toronto as being a collection of things that individually may not be worthy of high praise, but when taken together form a unique and wonderful city. Some examples are its distinctive neighbourhoods with their many beautiful parks, the Lake Ontario beaches and recreational facilities, the strength of its non-profit and charitable organizations and their participation in important city decision-making; its many festivals; and, perhaps best of all, the diverse culture that people have brought to the city after moving here from almost every corner of the world.


Now I will turn my attention to Toronto and an outing to Queen's Quay and Harbourfront last Saturday. While walking west on Queen's Quay, what struck me forcefully was the amount of new construction. I was aware that many highrise buildings were going up, having counted 56 cranes while returning home through the city centre recently. It was the development near the lake that was a surprise.

 

New Buildings and Cranes Viewed from Queen's Quay

As we continued on our way, it gave me a good feeling to recognize the casual, relaxed atmosphere of Harbourfront after two years since my last visit. We saw an elderly busker playing a sax and lots of people of all shapes and sizes, making their way like us to Lake Ontario. We rounded a corner and there it was, the lake in front of us and Queen's Quay Terminal with its shops on our right. 


The creation of Harbourfront as the attractive recreational area it is today was made possible by public ownership of the land and a deliberately flexible official plan. I thought I could see the results of a relatively hands-off approach by the authorities. There is a sort of helter-skelter unplanned appearance that I could see might encourage visitors to relax, enjoy, explore and experience the place freely and at their leisure. Maybe that is why it has become so popular.

 Harbourfront Kiosk

 Boats, and Behind Them, a Footbridge

A Performance in the Bandshell

 Fun in the Water

 

 Boat Called the Oriole

Harbourfront Restaurant

West Jet Stage

Paul and our Border Collie, Maxwell

Harbourfront extends for almost a mile along Queen's Quay west of Yonge Street and east of Spadina Avenue. It is full of people and activity, especially on weekends. There are several buildings, including Harbourfront Centre.  A search on Google Maps - Earth will give a good picture of it, especially if you zoom in.