BU111 Study Guide - Final Guide: Initial Public Offering, Protectionism, Double Taxation
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BU111 Full Course Notes
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Document Summary
Privately owned, publicly traded, profit seeking, largest and most important institution. Td, rbc, scotia bank, cibc, bmo: account for 90% of total bank assets. Schedule i canadian owned banks, no more than 10% voting shares. Schedule ii may be domestically or foreign owned, usually 8% voting shares. Major source of short-term loans for businesses. Secured loan putting an asset against your loan, ex. Unsecured loan don"t put an asset against your loan, higher interest rate. Expand money supply through deposit expansion: money in bank collects interest, we pay them higher interest rate. Trust companies and credit unions: smaller than chartered banks, decreasing importance, being bought out, becoming more popular. Trust company safeguards funds and estates entrusted to it, may also serve as trustee, transfer agent, and registrar for corporations. Credit unions co-operative savings and lending association formed by a group with common interests: one of the biggest financial intermediaries.
