MGTA05H3 Lecture Notes - Lecture 9: Scotiabank, Canadian Imperial Bank Of Commerce, Oligopoly
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MGTA05H3 Full Course Notes
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Purpose is to introduce one group to the other. People with 10867 who have no immediate needs and plans to people with needs and plans who have no 10867 *find/locate money, collect money from some people, organize it, and redistribute it to other people. Sometimes called financial institutions- institutions make banks, investment dealers, pension funds, insurance and other stuff seem important. While they are not, they are mere businesses looking for profit. Take deposits depositors and make loans to people with ideas but no money. Banks collect 8% interest from some small business owner, and pays me 2% interest for my money that i put in the bank; interest spread = 6%, that which banks have. Offer extensive branch networks; you can suck in lots of money from so many people and disperse it (loan) widely. Small #: makes regulating banks easy (5 huge banks); canadian govt, is able to control the activities of the banks.
