Canada's banking system

In terms of economic development, Canada is among the seven leading industrialized countries. An important place in the economic potential of the country is the financial services sector, which the survey results, considered the World Economic Forum in 1998, ranks 6th among the 53 states in terms of competitiveness and a place in the world in terms of stability. Canada's financial sector is highly diversified. One of his key players include: local and foreign banks, credit institutions and cooperative offices, insurance companies, insurance agents and brokers, trust companies, mutual funds, securities dealers, pension managers and investment advisors, specialized financial company. According to estimates of the Association of Canadian banks (Bank), Canada has one of the most efficient and reliable banking systems in the world. It includes 54 credit institutions with total assets of 1.3 trillion. the $ 8211 bank branches. In the banking sector employs 221 000 people. The first credit facility was opened in Canada in 1817, however, the formation of the banking system refers to 1933, when Macmillan Commission held its first audit of the financial services sector, while consisted of 10 banks. It should be noted that since the Canadian banking system has not undergone significant changes in number, and today the country's 11 registered Canadian banks. At the same time as a result of a significant increase in bank capital, new products and a variety of services offered in this system have been significant changes. By the middle of the XX century. banking business was limited to the involvement of cash deposits and granting loans to corporate customers. However, gradually expanding the scope of banking services, opening the way for new activities. The Banking Act 1967 has decided to mortgage lending and lending to the purchase of consumer goods. Diversification of services has been further developed in 1987 and 1992, when the financial legislation of Canada was amended to allow banks to engage in securities transactions and trust activities. However, despite the increased ability to conduct operations, the foundation of the banking business is attracting deposits and granting loans. According to the law of banking in Canada distinguish between two types of banks: banks Category I (Schedule I banks) and banks of category II (Schedule II banks). In category I include only the local banks, shareholders, which is a wide range of individuals, while in the same hands could not be more than 10% of its shares. As of June 1999 in this category included 8 banks: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Canadian Western Bank, Laurentian Bank of Canada, National Bank of Canada, Royal Bank of Canada, The Toronto-Dominion Bank. Topic: Banking systems | Tags: U.S. banking system