The federal government has approved Royal Bank of Canada’s $13.5-billion acquisition of HSBC Canada.

The deal is the largest in RBC’s history and has widespread commercial real estate ramifications for the bank, its clients and its partners. Among the most notable aspects: A new global banking hub will be established in Vancouver, supporting 1,000 jobs and creating about 440 new positions, and RBC will maintain services at a minimum of 33 HSBC branches for the next four years. RBC will also provide $7 billion in financing for affordable housing projects.

In addition, RBC will waive fees for HSBC clients transferring mortgages to RBC, and provide additional retail lending support for the redevelopment of single-family homes into multi-family residential properties. RBC will also increase its client operations in Winnipeg and boost its workforce in the Manitoba capital by 10%.

Dave McKay, RBC’s president and CEO, called the deal good for the country and Canadians in a news release. He said the acquisition will keep more of Canada’s financial sector under Canadian ownership, allow more Canadians to access the global economy, and increase the strength and scale of RBC’s international banking capabilities.

The acquisition stemmed from London-based HSBC’s desire to exit the Canadian market. Most HSBC Canada branches are located in Vancouver and Toronto.

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