The Bank of Canada is the biggest name in the Canadian financial circle, with comprehensive control over most economic matters of national importance. They primarily execute the central-banking operations. They also design and distributes the national currency.
The Canadian monetary network is highly effective and transparent with the chartered banks helping out The Bank of Canada, regarding the financial matters. Together they are the center of Canadian finance.
There are yet other financial organizations in Canada like the credit unions, provincial saving banks and the mortgage companies. In the recent years a trend of merging has been noted amongst them.
In order to operate in Canada banks need to be recognized by the Federal Government. The large banks in Canada remain the biggest financial entities and are independent with regards to foreign exchange operations.
The Canadian Venture Exchange was formed in 1999 with the merger of the stock exchanges in Alberta and Vancouver. The other main stock markets are at Winnipeg, Montreal and Toronto. The US and the Canadian stocks are highly interlinked.
In the Canadian financial arena, the level of foreign proprietorship is pretty high. It amounts to almost fifty percent of the resource and manufacturing industry. The agricultural sector, however falls outside this purview.
With regards to the bond market, the prevalent force has been the government-borrowing division. Over the years the US investors have put the larger part of money in the Canadian investment industry.
North American Industry Classification System has classified the following financial institutions in Canada in the year 2002:
- organizations specializing in monetary mediation by raising, channeling, and transforming or repackaging funds
- organizations dealing with sharing risks, collection of fees, building and investing cash reserves, and contractual payments
- organizations specializing in, or supporting financial mediation, insurances and employee benefit programs
On the 17th of May this year the Canadian premier Stephen Harper introduced the national government's Science and Technology Strategy, geared towards creating a stronger and durable Canadian economy. The Canadian government intends to employ science and technology to realize these ambitions.
Finance Canada is entrusted with formulating the national budget, analyzing and planning the tax policies, as well as determining the laws and regulations for the monetary companies.