ECN 204 Lecture Notes - Lecture 9: Scotiabank, Oligopoly, Military Cross
11 Apr 2015
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Commercial banks/chartered banks: financial institutions which accepts deposits (liability) & make loans (asset) Spread - interest-rate differential (diff between what u pay your depositors what you charge borrowers) Unit banking e. g. usa (over 7000 different banks) Small, individually owned banks with few branches. Few big banks with thousands of branches: td, cibc, bmo, scotiabank, rbc, bmo oldest bank in canada 1952, oligopoly few big companies dominate the marketplace. **note: oldest chartered bank in canada on final exam!! Schedule i: canadian-owned, at least 75% shares held by canadians. -widely held shares (no one is allowed to own more than 10% shares in any bank)--not important. Schedule ii: foreign-banks operating in canada e. g. hsbc. Whether its schedule 1 or 2, any bank in canada is owned by federal govt. Safeguards to prevent a run on the bank : all accounts up to a max of ,000 are insured by cdic. (canadian deposit.
