Spain’s largest bank was greenlighted to start operating in Canada, according to a notice from the Office of the Superintendent of Financial Institutions (OSFI). Morningstar analysts expected that the bank would merge with its sister company, automotive lender Santander Consumer in Edmonton, as part of the request. (The Logic)

Talking point: Federal bank licencses are difficult to obtain in Canada, with OSFI only issuing 11 over the past decade, per Morningstar. Santander, which has 168 million customers globally, has a major presence in the Americas, and is also a more prominent lender in the U.S. than other European competitors. While Santander’s retail division is strong, it will likely face stiff competition from the Big Six: two major banks that entered the Canadian market in the past, HSBC and ING Bank were subsequently acquired by RBC and Scotiabank.