MGM101H5 Lecture : Chapter 18 Notes (on Finance)
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MGM101H5 Full Course Notes
Verified Note
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Document Summary
The financial services industry in canada and representing 6% of gdp. Financial services sector plays important role in canadian economy, employing 600,000. Before, canada had four distinct groups of financial institutions: banks, trust companies, insurance companies, and securities dealers. But now it is increasingly difficult to distinguish firms by type of function. A credit union is a non-profit, member-owned financial co-operative that offer a full variety of banking services to their members. A trust company is a financial institution that conducts activities like a bank. But it can administer estates, pension plans, and agency contracts, which banks cannot do. As a result, many banks are acquiring trust companies. Non-banks are financial organizations that accept no deposits but offer many services provided by regular banks. Examples of non-banks include pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses.
