ADMS 1010 Lecture : financial institutions, laws and policies in canada [p2]
Document Summary
Week #7 the bank of canada: financial institutions, Canada followed the british banking system, with a limited number of larger banks with multiple branches. In the us independent local banks was the norm. With our relatively small population spread out in rural centres, the british model made more sense: branch banks required less capital than a full independent bank. The branch banking system lead for a very stable banking system since the branches spread the risk around the country. There was little need for a lender of last resort: in the us, with its small banks they would often find themselves with seasonal cash flow problems and a central bank (the united states federal. The us federal reserve system (the fed) was set up in 1913. The fed was set up in part due to a financial crisis in 1907 (called the panic of.