Canada House cautious on bank M&A.

Byline: Laura King in Toronto

A parliamentary committee examining how the Canadian government vets proposed mergers among big domestic banks said Thursday that consolidation is a "legitimate business strategy" but did not recommend streamlining the complex review process.

In its report, presented Thursday, March 27, in Ottawa, the House of Commons Finance Committee said banks that merge must increase capital access to small business, guarantee the same services, minimize job loses and protect rural customers. Interest groups raised those issues during committee hearings in February.

The committee, the report concluded, "hopes that Canada's large …