Banks of Canada: brief information

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Canada's banking system is some of the most reliable and secure financial infrastructure in our very turbulent world. Moreover, since 2010, it has consistently been in first place in various ratings in terms of the value of its individual components. In this article, we take a look at Canadian banks and talk about their features that set them apart from their competitors.

Historical background

The beginning of the regulation of financial flows in this North American country dates back to 1817. Until that time, financial transactions were carried out in the state with the involvement of exclusively overseas bankers. However, at the dawn of the 19th century, the first banking institution in Canada was created in Montreal, which did not stay alone for a long time, as competitors began to develop rapidly, actively propping up the pioneer and thereby forcing him to progress in his activities.

In 1871, Canada's banks began to actively use only the emerging dollar. It was this local currency that drove out all its competitors, and the bankers began to conduct their own policy in the field of insurance and mutual lending withoutinviting any intermediaries.

Head of the house

The National Bank of Canada is a real titan of the country, which carries out emission work. It was originally established as a joint-stock company, but foreigners and commercial structures could not be its shareholders. In the period 1935-1938, the government of the state carried out the redemption of shares held by individuals from individuals, which led to the strengthening of the bank as a central one.

In 1939, he was able to achieve a net worth of $1 billion. During World War II, most of its branches in Europe were closed, but it flourished in North America. After the end of hostilities, the institution mastered the financing of the development of Canadian oil and gas.

Functions of the main bank

Royal Bank of Canada is essentially a huge financial conglomerate that performs a lot of the most important functions of the state:

• Monetary policy. Its goal is to promote the development of the country's economy, curbing and forecasting inflation.
• Issue of currency and responsibility for its appearance and protection.
• Funding both domestically and internationally.
• Federal government and other client fund management.
• Issuance of savings bonds and winning bonds.

Interaction

Considering the largest banks in Canada, we point out that the main one in the country is subordinate to the Ministry of Finance. However, he still hasa certain degree of independence from officials. If we talk about his joint work with other local financial institutions, then he checks the sufficiency of funds to fulfill payments that are made by other banks in Canada.

Subtleties

The Bank of Canada, in addition to all of the above, also deals with unclaimed balances of money in accounts. This is done in order to find either the legal owners of the funds, or their heirs. The bottom line is that the institution regularly publishes data on accounts with which no transactions were carried out for ten years before investing in the Bank of Canada. In addition, the main financial institution of the country is engaged in the detection of counterfeit bank notes and is actively cooperating with the police to inform the public and punish counterfeiters.

It is impossible to ignore such an interesting fact: the Bank of Canada repays damaged credit notes without any problems. If for some reason a person seriously damages these documents and they become unusable, then their value is determined in a special laboratory of the Bank and paid to the citizen.

Toronto Dominion Bank

When studying the banks of Canada, you should definitely pay attention to the named financial system. Its abbreviation is TD. This corporation, headquartered in Toronto, employs about 85,000 people around the planet, and the number of customers reaches 22 million. According to their levelWith a market capitalization of approximately $75 billion, the institution is consistently ranked among the top ten banks in the North American continent.

Bank of Nova Scotia

Scotiabank is the name given to this bank in Canada. In terms of its cash reserves, this structure is the third in the state. The institution's offices are located in almost 50 countries around the world and serve about 20 million client base. The bank provides services for both businessmen and individuals. Scotiabank began its activities in 1832 in Halifax, but at the beginning of the 20th century the main office was moved to Toronto.

Features

All banks in Canada, the list of which is quite impressive, are subject to the laws of the country and are divided into three large categories:

• The first group includes institutions that are able, on the basis of the Law "On Banks", to accept deposits that are subject to insurance.
• The second category includes subsidiaries of foreign financial institutions that accept deposits.
• The third group is characterized by the fact that it includes relevant institutions with foreign capital that have some restrictions in their activities.

The current legislation of the North American power states that Canadian commercial banks with foreign capital are divided into those that have a full range of services and those that can only issue loans. And if the former can accept deposits in the amountnot exceeding $150,000, the latter are only able to borrow money from other financial institutions.