BU111 Lecture Notes - Toronto Stock Exchange, International Monetary Fund, Unsecured Debt
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BU111 Full Course Notes
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Document Summary
Economic factors: canadian financial system, time value of money. Take money from orgs/people with surplus to households, governments, corporations, that do not have a lot of money. I. e. investing money in bank and bank lending to other groups. Lines between pillars have been blurred due to deregulation. In 1980 bank act changed, became deregulated, allowed for all companies to start broadening into different products and services (ie. loan money to businesses, provide life insurance, etc) Pillar #1 chartered banks: privately owned, publicly traded, profit seeking. Largest and most important institution: play large role in our financial system, privately owned, legislated by government, publicly traded companies, anyone can buy shares and have some ownership of company, all profit seeking. Largest and most important financial institution within our financial system: concentrated and highly regulated industry. Five largest account for 90% of total bank assets. High barriers to entry due to legislation and sheer size and power of chartered banks.
