BU111 Study Guide - Final Guide: International Monetary Fund, Primary Market, Ontario Securities Commission
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BU111 Full Course Notes
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Document Summary
Financial institutions facilitate the flow of money from surplus to deficit. Lines between the 4 financial institutions has been blurred since changes in the bank act more competition and less regulation. Chartered banks (allowed to enter other businesses, bought trust companies, and became investment dealers) Publicly traded, profit-seeking companies can buy their stocks (e. g. bmo) Largest and most important institution (we put and borrow money, and ask them for financial advice) Serves businesses, individuals, and others (large business, government) The 5 largest canadian banks = 90% of total bank assets. Bank act: limits foreign controlled banks to less than 8% of total domestic bank assets: foreign banks can increase competition but limits population in investing money in foreign banks. When you deposit money in bank, bank pays you interest, takes your deposit and loan it to someone else, then they pay interest to the bank expands total supply of money.
