Банки Канады

1. The financial system of Canada

2. Canada's central bank (Bank of Canada)

3. The banking system of Canada 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1. The financial system of Canada

Bank Of Canada is the country's central bank, is not a commercial bank and does not offer banking services to the public. More Precisely, bank is responsible for monetary policy Canada, the issue of banknotes, the financial system, the management of financial assets of the country. The principal role, reflected in the so-called The"Act The Bank Of Canada" is to "stimulate the economy and the financial well-being Canada».

Monetary policy The Bank Of Canada includes two key components, inseparably connected with each other:

• the establishment of flexible interest rates and
• implementation of control over the level of inflation, ensuring trust the level of which is the office of the level of interest rates.

Cornerstone of monetary policy The Bank Of Canada is the system of control and hold inflation rate of about 2% of the level, mid-point of the corridor possible changes of inflation within the limits of 1-3%.

The financial system of Canada  consists of:

— Financial institutions, which include banks, credit unions and similar organizations. Bank Of Canada every day provides the maintenance of the liquidity of the financial institutions, which are part of the the financial system. As a lender of last resort Bank Of Canada also provides immediate liquidity to the eligible institutions of the system at the existence of such problems. 
— Financial markets include markets of money, bonds, equities, derivatives, currencies. Bank working closely with financial markets through its presence on the foreign exchange markets, carries out trade and management of government securities, as well as has an impact on the level of interest rates, the establishment of overnight rates.

— The system ensuring the completion of payments and clearing.

Asset management Bank Of Canada is the fiscal agent of the Government Canada. The role of the fiscal agent is surrounded by a specific liability related to the management of public funds:

Bank the government and the Manager of Treasury department  
Bank manages the accounts of the Chief administrator of taxes, through which almost all the money collected and spent by the government. Bank ensure that at these accounts will be enough cash to ensure daily needs, and the surplus will be invested in deposits.

     Foreign exchange reserves Bank also manages the foreign the foreign currency reserves of the government. These provisions provide the liquidity of the assets of the government and help to create the appropriate conditions established the exchange rate of the canadian dollar in market of currencies. In rare cases, they give the opportunity to Bank Of Canada carry out targeted interventions with a view to countering the destructive movement of the canadian dollar on the world market currencies.

     Debt management Government debt ( or, as they also called internal or federal) for the most part consist of the outstanding government securities, such as treasury bills and the bonds. Bank presents the government with recommendations on the implementation of the the most effective management of that debt and sells securities the government of the auctions distributors and dealers. The main objective of management Bank the debt is to assist the government of stable and low-cost means for the government.

     Administration and management Management Bank Of Canada carries out The board of directors bank consisting of 12 persons of the elect, plus, the Chairman of the Bank and his first deputy, and the current activities of the Council governing (managing Board) consisting of 6 people.

     IN The board of directors bank also included deputy minister of finance, but without the right to vote. The Members Of The The board of directors are appointed by the minister of finance for three years and are the representatives of different regions of the country.

     IN The governing council composed of the chairman, his first deputy and four deputy. The Board Of governors determines monetary policy and all decisions relating to the financial the system, i.e. a body of ensuring the day to day management Bank Canada. Rate decisions are taken by consensus.  
Meeting for the adoption of the decision on the rates are held eight times a year.

2.Canada's central bank (Bank of Canada)

The Bank of Canada is a central issuing bank in the country. It was established as a joint stock company, but the holders of its shares could not be commercial banks and their employees, as well as foreigners. The Government of Canada during the 1935-1938 headed he. bought from private owners belonged to their shares, thereby strengthening the Bank as a central. His work determines the federal government, which appoints the Board of directors. In the composition of the Board of directors consists of the deputy minister of finance. The Bank of Canada systematically reports to parliament on its activities.

     The main functions of the Bank of Canada are: regulation of money circulation and credit; to maintain the exchange rate of the national currency in relation to other currencies; the mobilization of the level of prices, the level of production and trade. The Bank of Canada carries out the issue of banknotes in circulation, provides advances to commercial banks, manages the cash reserves of commercial banks, regulates the settlements between the banks on the clearing accounts, regulates the state gold and foreign currency reserves.

     The Bank of Canada is an agent of the federal government, manages the securities of the state, its cash, and ensures the connection with the central banks of other states. The Bank of Canada does not purchase the shares of commercial banks, no credit and does not take deposits from private persons and companies.  
The main place in the assets of the Bank of Canada occupy investments in government bonds. He also conducts transactions with securities for offering them on the open market, interest on which are the most important source of his income. The main article of the liabilities of the Bank of Canada are the banknotes. Part of them settled in the commercial banks as cash reserves. In addition, non-interest-bearing deposits of commercial banks are also article reserve. In addition, the Bank of Canada performs the function of "bank of banks", i.e. it is the lender of last resort to commercial banks, which it provides short-term loans in small amounts , is making small investments in foreign securities. Commercial banks as creditors of the Bank of Canada in accordance with the law should keep in their reserves. Deposits at the Bank of Canada kept the government of Canada, the major foreign central banks. 
The basic directions of activity of the Bank of Canada was formed in the period of strengthening of state-monopolistic tendencies, which contributed to increased state regulation of the monetary-credit system. This was especially evident in the post-war period, when the state turned to the targeted антициклическому regulation of economy. The greatest activity in the regulation of money circulation the Bank of Canada showed in the second half of the 1950s. As a regulator of economic activity performed the discount rate, which varied in 1944, in the 1950s and in 1955 in the range of 1.5 to 2.5%.

     However, the low efficiency of interest rate policy, its lack of flexibility forced the Bank of Canada monetary-credit regulation of the move to the operations with securities on the open market. For the first time such operations the Bank of Canada held in the salvation of the canadian dollar during the currency crisis of 1962. At the present time in the policy of the Bank of Canada is viewed method of regulation of mandatory reserves of commercial banks. Changing them, the Bank of Canada increased or decreased the volume of commercial banks'funds for crediting. In addition, since 1971, the Bank of Canada sets limits the increase in the money supply in circulation. However, these measures do not always contribute to the adequate regulation of the economy.

     Commercial banks of Canada

     

     The main link of the credit system in Canada consists of private, commercial, or preferred, banks. They have a huge influence on the structure of private investment and consumer spending in the country, financing the industrial, trading and other enterprises.

     During its existence, the commercial banks are constantly focused, i.e. happened mergers and acquisitions, their number has been decreasing, but the financial strength increased. Canada's Law on banks, created on the English model, supported the organization of the big banks and their branches in the provinces, which allowed banks to maneuver in cash in different geographic locations. 
The commercial banks in Canada are deposit, they take into account the bills, take deposits, open for clients personal savings and term deposit accounts. In its portfolio hold securities of the government and private corporations, provide loans different companies, private persons, shall carry out transactions with currency, serve export operations. Commercial banks issue credit cards and traveler's checks, provide services for the storage of valuables in a special safes, carry out operations of medium-term and long-term renting of machinery and equipment. They turned out in large institutions to provide financial services".

     The main type of active operations of commercial banks are lending operations. The lending operations of banks the main place occupies short-term lending to private enterprises, and in the last time there is a growing volume of loans on housing construction and purchases in installments.

     In the crediting of industry there is a trend of branch specialization, but in recent years is dominated by the universalization of banking functions, the creation of banking consortia for the financing of large industrial objects. Commercial banks exporters mainly provide short-term loans, and the long-term credit taken by the state. 
In the post-war period has changed the structure of investments of commercial banks in the securities. For a long time commercial banks preferred to government bonds, in the future they began to evenly distribute the money between securities state and corporations.

     In the liabilities of the commercial banks take a large share of the savings account. From such investment banks receive the largest share of profit for the loan transactions. Widened deposits in foreign currencies, which are used by banks for on-lending to foreign clientele, for the financing of foreign trade transactions. 
Recently, the network of offices of the canadian commercial banks in other countries, the largest number of their offices, subsidiaries, agencies openly in the united states, great Britain, countries of the near and Middle East. Essentially commercial banks of Canada turning into international credit institutions, the head offices of which are located on the territory of Canada. The transnational banks in the first place may include the leading "five "of commercial banks of the country - "Royal bank of Canada", "Canadian imperial bank of commerce, Bank of Monreal", "Bank of Nova-Scoshia", "Toronto-Dominion bank".

Other banking institutions

     However, in the mid-1980s, the most vivid example of the undermining of existing already for many decades, the system of separation of functions between the "four pillars" of canadian finance and credit becomes the rapid expansion in the country is quite new for Canada, the type of financial institution is widely diversified investment-banking firm, or, in the terminology of the canadian experts, "merchant bank".

     The rapid development of this type of financial institutions in many respects is explained by the fact that the "merchant bank" practically do not fall under the existing laws regulating the sphere of finance in Canada, and primarily under the laws to restrict the rights of depositors buy large (over 10%) of the packages of the voting shares of the financial companies. Thus, the penetration of the credit and financial markets by means of the institutions of this kind in the highest degree beneficial to the largest groupings of monopoly capital, with the appropriate means to fully dispose of large financial organizations "possessions" of such companies. They are based on a comprehensive financial and economic potential of all financial institutions under its control, and use the already existing network of their clients, their knowledge of the market, management experience, etc. 
The first and the largest investment banking firm of Canada corporation became "Heath international corp." - a part of the huge family possessions Edward and Peter Bronfmanov. Another example of the "commercial bank" can serve as a "Central capital management inc.", separated from the holding company "Central capital building". His main ownership is one of the largest canadian trust companies "Central trust". The group of financial institutions control of two major canadian businessman R. Cohen and DR. Ellen. Own "commercial bank" - "Lancaster feinashenl inc." organized by the financial conglomerate @Kraunecs inc."  
(central link of it - the biggest insurance company of the "Crown of life insurance co"). If in 1985, in the country there was only one such institution, then in 1988, there were about half a dozen, and this number is constantly increasing. "Commercial banks" literally from all of the largest diversified companies in the area of finance. Formation of financial conglomerates from different according to their specialization financial companies became the most important feature of the centralization of capital in the credit and financial sphere of Canada.

     Savings banks in Canada have not received such a large spread, as in the united states. In the main, they are developing in Quebec and controlled by the "family" groups of French capitalists. The received monetary funds of the population are invested them in government bonds.

     The most important role in the development of the banking executives of canadian financial capital has played a banking legislation. Special research conducted in Canada, have convincingly shown that the banking system of the country has always reliably protected as from the competition of other financial sectors, and the credit-financial institutions under foreign control. As a result of such protection the banks were able to extract high monopoly profits.

     Widely used by the financial capital of Canada in their own interests and the unit of administrative regulation (regulation) of different branches and spheres of the economy of the country. This primarily refers to the regulation of the securities market (stocks and bonds) of the corporations. So, a number of special acts, regulating the securities market (this area is under the jurisdiction of the provinces), complements the action of the tax laws in the direction of further concentration and centralization of capital in the country.

     In particular, the corporation, registered in the province of Ontario, covers a rule, according to which the purchase of external shareholder of" 20% or more of the voting shares of the company at a price exceeding the average market by 15% (this is typical at the conclusion of the transaction between the largest buyer and a major seller in the face of the leading corporations of Canada), he is obliged to offer the same "bargain" price of the rest of the owners of small packets. Thus, the law is often makes corporation, planned just a big investment in the shares, fully absorb any one company.

     Among other laws, regulating the securities market, should be highlighted few well-known position on the structure of the investments of pension funds in Canada. During the post-war period of the canadian pension savings funds were obliged to at least 90% of all funds invested in stocks and bonds only canadian firms. Being envisaged as a means of stimulating the economic development of Canada", this measure has played an invaluable role in the process of concentration of economic power in the country.

     An important feature of the canadian economy are its very close links with the economies of the united states: about 20% of the manufactured in Canada products are exported to the USA, and the financial markets of these two countries in a highly integrated. The second feature, which distinguishes Canada from most other industrialized countries, is the large specific weight of the mining industry in its gross domestic product. As raw materials constitutes a significant part of the exports, the terms of trade for Canada is always improving in periods of rising prices for raw materials and deteriorating during the periods of their fall.

     Monetary and exchange rate policy is aimed at strengthening of the national currency, which is achieved by means of the control over inflation and stabilizing the exchange rate of the canadian dollar. For this purpose the Bank of Canada sets targets for the rate of inflation for 3-5 years and intervening in the foreign exchange markets in exchange for foreign currency. Also, at the present stage the main instrument of monetary policy in Canada is the movement of deposits held by the government from commercial banks and other clearing institutions in the Bank of Canada - "withdrawal" (drawdown), as well as in clearing banks - " redeposit " (redeposit). In general, the latest trends in the foreign exchange and monetary policy of the Canada evidence of the interest of monetary authorities in maintaining its influence on the formation of the basic proportions of the external economic exchange and structure of the currency of commitment to the fight against inflation and provide on this basis, the sustainable growth of the economy.

3.The banking system of Canada

The credit system of Canada has a complex institutional structure, the establishment of which had a strong impact of the credit system of the USA and great Britain. These countries sought to strengthen its position in Canada by means of mastering national sources of financing. Credit institutions have arisen even in the colonial period, the functions of the bankers performed trading companies. In Canada there were various branches of foreign credit institutions. First commercial bank of Canada was established in 1817- the Bank of Monreal". Then there is a number of specialized institutions: insurance companies, trust and mortgage companies, etc.

The first world war has had a profound impact on the strengthening of commercial banks, and after it, the more rapidly developing non-banking institutions: a company for the financing of sales in installments and consumer credit, insurance and trust company.

The world economic crisis of the 1930s had a negative impact on the credit system, the commercial banks, in particular, and other credit institutions. In this period of is created the Bank of Canada, is reinforced by the government intervention in the credit system, activates activity of the specialized state institutions lending of housing construction and agriculture.

     Improvement of the banking system continued in the years of the Second world war and after it, there are new types of specialized credit institutions, leasing companies, insurance companies, pension provision.

     Modern credit system of Canada includes: the central issuing bank, commercial banks, specialized agencies. The central issue of the bank - the Bank of Canada is a single. The number of commercial banks small and, on the territory of the provinces act credit institutions provincial level. The credit system of the country is characterized by the following financial institutions: commercial, trust and mortgage banks, insurance and investment companies. Private for-profit, or the so-called charter banks enjoy full freedom in commercial activities. It regulates the parliamentary charters. Charter banks according to its purpose, are called to serve the industrial, commercial and state sectors of the economy. They carry out deposit operations, provide various kinds of loans, engage in foreign currency operations. 
Association of canadian bankers, the highest body of which is the executive board, stands at the head of the clearing system of Canada. Directly heads the system of settlements between the banks of the so-called Committee of the clearing and information centers. He has 10 organized by the regional clearing houses, referred to as the clearing centers. Regional clearing chambers exist in Ottawa, Calgary, Halifax, Montreal, Quebec, Реджайне, St. John, Toronto, Vancouver and Winnipeg. Their activity is directly managed by the local clearing of the association according to the mandates received from the Association of canadian bankers.

In the credit system and there are other institutions, or, as they call them in the country, "non-bank financial intermediaries" (НБФП). They also carry out banking operations. In this category include credit unions and co-operative .финансовые organization, serving mainly the francophone population. НБФП are quite diverse. In addition to these relate to them independent trust banks and trust departments of commercial banks.

As in the other major capitalist countries, in Canada developed the insurance business. In the country there is a high degree of concentration of the insurance capital. At the local insurance market sufficiently well established american companies; from 172 foreign firms operating in Canada, 134 - from the united states. In turn, the american market is the main area of external expansion of canadian insurers. IN the USA there is 71 canadian insurance company in the Uk - 7, in hong Kong - 6).

     On materials of the book "Money. The Loan. Banks: Textbook for universities / EF. Zhukov, LEONID. Maksimova, A.. Pechnikova, etc.; Pod red. prof. EF. Zhukov" - M.: Banks and stock exchanges, UNITY, 1999. - 622.