The banking system of Canada is practically the most reliable and secure financial infrastructure in our entire troubled world. Moreover, since 2010, it has consistently been in first place in a variety of ratings in terms of the size of its individual components. In this article we will look at banks in Canada and talk about their features that distinguish them from their competitors.
Historical reference
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, Canadian banks began to actively use only the emerging dollar. It was this local currency that replaced all of its competitors, and bankers began to pursue their own policies in the field of insurance and mutual lending without inviting any intermediaries.
Chief in the house
The National Bank of Canada is the real titanium of the country, which carries out issuing work. It was founded initially as a joint stock company, however, foreigners and commercial entities could not be holders of its shares. In the period 1935-1938, the state government repurchased their shares from private individuals, which led to the strengthening of the bank as a central bank.
In 1939, he was able to achieve his own capitalization of $ 1 billion. During the Second World War, most of its branches in Europe were closed, but in North America it flourished. After the hostilities ended, the institution mastered financing for the development of Canadian oil and gas.
Functions of the main bank
Royal Bank of Canada is essentially a huge financial conglomerate, which 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, containing and forecasting inflation.
- Currency issue and responsibility for its appearance and protection.
- Financing both within the state and beyond.
- Managing funds from the federal government and other customers.
- Issue of savings bonds and winning loan bonds.
Interaction
Considering the largest banks in Canada, we indicate that the main one in the country is subordinate to the Ministry of Finance. However, he still has a certain degree of independence from officials. If we talk about his joint work with other local financial institutions, then he checks the adequacy of funds for payments 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 operations have been conducted for ten years before investing in a Bank of Canada. In addition, the country's main financial structure is in the process of detecting fake bank notes and is actively cooperating with the police to inform the public and punish counterfeiters.
One can not ignore such an interesting fact: the Bank of Canada repays damaged credit cards without any problems. If a person for some reason severely 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 Canadian banks, you should definitely pay attention to the named financial system. Its abbreviation is TD. This corporation, headquartered in Toronto, employs about 85,000 people worldwide, and the number of customers reaches 22 million. In terms of its market capitalization (an indicator of approximately $ 75 billion), this institution is consistently included in the top ten of all banks in the North American continent.
Bank of nova scotia
Scotiabank - this is the name of the bank in Canada. By the size of its cash reserves, this structure is the third in the state. The offices of the institution are located in almost 50 countries and serve about 20 million customer base. The bank provides services for both businessmen and individuals. Scotiabank began its activities back 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 broad categories:
- The first group includes institutions that are able to accept deposits subject to insurance on the basis of the Law "On Banks".
- The second category includes subsidiaries of foreign financial institutions that accept deposits.
- The third group is characterized by the fact that it includes the relevant institutions with foreign capital, which 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 an amount not exceeding $ 150,000, the latter are only able to borrow money from other financial institutions.