Canadian Financial Industry
The first Canadian bank - the Bank of Montreal was established in 1817, and this marked the beginning of the modern Canadian banking system. In the following years many new financial institutions opened for business. These new banks were issuing their own banknotes. The amendment done to the British North America Act in 1866, allowed both provincial and local governments to issue notes. The banknotes issued by the private Canadian banks were phased out, once the Canadian dollar was introduced in 1871. In 1935 the Canada established its own central bank, the Bank of Canada.
The large banks are referred to as the 'Big Five': Bank of Montreal, Canadian Imperial Bank of Commerce, Toronto Dominion, Bank of Nova Scotia, and Royal Bank of Canada. Other banks of smaller size represent the second tier banks. At present, Canadian banks boost more than 8000 branches at home and abroad.
There are 2 regulatory bodies overseeing the Canadian banking industry - the Financial Consumer Agency of Canada, and the Office of the Superintendent of Financial Issues. The Bank Act of Canada is frequently updated to ensure that the banking regulations are in sync with the realities in the Canadian financial world. Many worldwide organizations, including IMF, regard Canada's banking system very highly.
The Canadian banking system is also regarded as one of the safest banking systems around the world. Unlike other nations, Canadians did not have to bail out their banking institutions. In general, banks seem to be more stable in comparison to US and European banks. For instance, Toronto Dominion Bank was the fifteenth largest bank on the North American continent in 2007. In 2008, the bank became the fifth largest. The Bank of Nova Scotia continues to expand its operations during the last couple of years. The bank was successful in acquiring the Chilean Banco de Desarollo in 2007 and some additional 20 percent of Scotiabank Peru in 2008. In 2009, Scotiabank completed the acquisition of E*Trade Financial Group and acquired a majority interest in the asset management entity Five Continents Financial Ltd.
The majority of Canadians consider that good management is in place with regard to their banking system. They are confident that deposits are kept safe and make use of reasonably priced credit options.
The Canadian banking industry stability is not just something that economists around the world made up, but is supported by various statistics. The "Big Five" Canadian banks are one of the top employers in the country, employing over 250,000 Canadians. The banks also contribute to the economic growth by providing much-needed credit to hundreds of thousands of small and medium Canadian businesses.
Article Source: FxTradingStock.com
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Looking to find information on Canadian banks, then visit www.canadabanks.net. Use their loan calculator to calculate your loan payments.
by: Steven Milton
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Word Count: 435
Date: Fri, 11 Jun 2010
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