Bank of Canada
Definition
- Canada's central bank, manager of monetary policy, and "lender of last resort." The Bank of Canada is responsible for monetary policy and promotes a safe and sound financial system in Canada. The bank is also the sole issuer of banknotes and currency in Canada, and manages funds and does central banking services "for the federal government, the Bank and other clients." The Bank of Canada (Banque du Canada in French) is a Crown corporation of the Government of Canada.
Website
http://www.bankofcanada.ca
Relevant Locations
Ottawa, Ontario, Canada
Established Year
1935
Notes
Canada's central bank.
Synonyms
Banque du Canada, main bank
Acronyms
BC, BOC
Related Terms and Acronyms
- Canada Mortgage and Housing Corporation (CMHC) — Company Est. 1946, Canada-wide, Very Important,
- The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
➥ Insures Canadian mortgage lenders. - Commerce — Definition,
- The systems and activities that impact business and trade within a nation and abroad.
- Finance Canada — Company, Canada-wide,
- Federal department responsible for Canada's economic performance and regulation of financial institutions.
- Fiscal Policy — Definition,
- The use of government spending and taxation policies to influence the economy.
- Large Value Transfer System (LVTS) — Acronym,
- System being created by the Canadian Payments Association that will settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis.
- Prime Lending Rate (PLR) — Acronym, Very Important,
- The rate of interest charged on loans by chartered banks to their most creditworthy customers.
➥ Bank of Canada's prime (best) lending rate. - Prime Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
- Regional Bank — Definition,
- A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the province in which it is located. Usually called a Credit Union in Canada.
- Schedule I Banks — Definition,
- A designation in the Bank Act that refers to Canadian-owned banks that are widely held, i.e., ones in which no one owner holds more than 10% of shares.
- Schedule II Banks — Definition,
- A designation in the Bank Act that refers to foreign-owned banks and closely held Canadian banks, i.e., banks in which an owner may hold more than 10% of outstanding stock.
- Schedule III Banks — Definition,
- Foreign banks not incorporated under the bank act that are allowed to conduct business in Canada.
- Settlement Points — Definition,
- Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.
