BU111 Chapter Notes - Chapter 6: Td Canada Trust, Canada Trust, The Dominion Bank
Tuesday, September 30, 2014
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CH.6 The Canadian Financial System
Financial Institutions
- main function: facilitate the flow of money from sectors with surpluses to those with deficits
- attracting funds to chequing and savings account
- incoming funds are loaned to businesses and individuals
- four financial pillars:
1) chartered banks
2) alternate banks
3) life insurance companies/specialized lending and saving intermediaries
4) investment dealers
Changes Affecting Financial Institutions
- banks are now permitted to own securities dealers, establish subsidiaries to sell
mutual funds, and sell commercial paper
- trust companies have been bought by banks
EX: Toronto Dominion Bank and Canada Trust merged… Now it is TD Canada
Trust
Pillar #1 Chartered Banks
- privately owned, profit-seeking financial intermediary that serves individuals,
businesses, and nonbusiness organizations
- largest and most important financial institution
- offer chequing and savings accounts, make loans, and provide other services
- main source of short-term loans for businesses
- in Canada, we only have a few banks, but each with hundreds of branches
- schedule I banks are Canadian-owned and have no more than 10% voting shares
controlled by a single interest
find more resources at oneclass.com
find more resources at oneclass.com
Tuesday, September 30, 2014
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- schedule II banks may be Canadian-owned but do not meet the 10% limit or are
foreign
- Bank Act limits foreign banks
SERVICES OFFERED BY ANTS
Pension Services
- help establish saving plans for retirement
- receive funds and invest them as directed by customers
- provide info on investment possibilities
Trust Services
- management of funds left in the banks trust
- will perform tasks like managing your investment portfolio
- managed estates of deceased persons
International Services
- currency exchange, letters of credit (a promise by a bank to pay money to a business
firm if certain conditions are met), and banker’s acceptances (a promise that a bank
will pay a specific amount of money at a future date)
Financial Advice
- help customers manage their money
- may recommend different investment opportunities
- might include guaranteed investment certificates, mutual funds, stocks, and bonds
Electronic Funds Transfer
- provides payments and collections by transferring financial info electronically
- can help businesspersons close an important business deal by transferring money
within seconds
- automated banking machines let you bank at almost any time of day or night
find more resources at oneclass.com
find more resources at oneclass.com
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BU111 Full Course Notes
Verified Note
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Document Summary
Main function: facilitate the flow of money from sectors with surpluses to those with deficits. Attracting funds to chequing and savings account. Incoming funds are loaned to businesses and individuals. Four financial pillars: chartered banks, alternate banks, life insurance companies/specialized lending and saving intermediaries, investment dealers. Banks are now permitted to own securities dealers, establish subsidiaries to sell mutual funds, and sell commercial paper. Trust companies have been bought by banks. Ex: toronto dominion bank and canada trust merged now it is td canada. Privately owned, profit-seeking financial intermediary that serves individuals, businesses, and nonbusiness organizations. Offer chequing and savings accounts, make loans, and provide other services. Main source of short-term loans for businesses. In canada, we only have a few banks, but each with hundreds of branches. Schedule i banks are canadian-owned and have no more than 10% voting shares controlled by a single interest.
