MGMT 1030 Lecture 10: The Development of the Canadian Banking Sector
18 Aug 2015
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Document Summary
The historical development of the canadian financial sector: banking in new france and early british north america. Merchants often assumed the role of credit in the economy of new. Imbalance of trade with europe drained specie out of the colony. Card money proved to be a short term solution to currency problems. Instability in the colonial financial structure continued after 1763. Transferable certificates for government purchases the first reliable form of currency on upper canada after 1792. Army bills during the war of 1812 were legal tender notes redeemed by the british government: chartered banks in british north america. Bank of montreal established in 1817, followed by others, including the bank of nova scotia in 1832. Granted the power to issue bank notes. Limits on the amount of debt in relation to deposits. General conservative nature of chartered banking in british north.
