Bank OF Canada (frz. Banque you Canada) is of Canada central bank. It was created by the "“bank OF Canada law"” of 1934, around "“the economic and financial well-being of Canada to promote"”.

The current explanation to its goals reads:

The responsibility of the bank OF Canada concentrates on the goals of a low and stable inflation rate, a safe and reliable currency, financial stability and an efficient administration of the government loans and national indebtedness.

It is the only authority, which spends Canadian notes.

The headquarters of the bank is at the crossing of Wellington Street and bank Street in the city center of Ottawa.

History

Canada did not have long time an own central bank. Each larger bank of the country spent its own currency and the cash supply of Canada was hardly organized. The Federal Department of Finance spent cash notes only in small numbers of items. The Banque de at the time at that time the largest bank of the country, functioned as the state bank 9. With the thought out branch bank system Canada had a very stable bank system. There was only little need according to a credit giver last instance and the bank system by season-dependent was not shaken like the banks of the USA.

Although there were some advocates of a central bank, mostly Farmer, the status remained existing quo at the beginning of the twentieth century.

This should change only with the drawing of a large recession up. Many Canadians accused the banks of to accelerate this recession by their behavior. The supply of money shrank together and deflation belonged to the agenda. The demand of the Farmer to a central bank now supported of the processing trade and further groups. A further proponent was the Royal bank OF Canada, which did not the rival of the bank OF Montreal the national banking transactions. The government felt besides in their courses of action for the repayment of foreign credits reduced.

Prime minister R.B. Bennett appointed thereupon in the year 1931 a commission, that recommended the mechanism of a central bank. The bank took its services at the 11. March 1935 up, after the Verabschiedung bank of the OF of Canada law. It was created first as a body in private property, in order to guarantee their political independence. 1938, under Mackenzie King, became it a Crown corporation in the possession of the government and the one of the prime minister appointed director.

The competence to the expenditure of notes was transferred their 1949 by the Treasury and the private banks were requested to take their currencies from the circulation.

The bank played an important role with the financing of the Canadian efforts of war in the Second World War.

It kept the task later to promote economic growth to Canada. To energize the subsidiary "“Industrial development bank"” in an educated manner around to investments into Canadian enterprises. The monetary policy of the bank was aligned to low interest rates and full employment with small attention of the inflation rate. When in the early 60's-years an inflation began, director James Coyne arranged a reduction of the supply of money. Prime minister John Diefenbaker agreed not with this decision and instructed a return to full employment objective. This caused a short crisis, since the bank was developed as according to the free market organized organization and should not under political control stand. Coyne withdrew and Louis Rasminsky took over its post.

The bank aligned itself in the consequence more to fight against inflation, so that this was proclaimed in the 80's-years to its primary goal.

Director

The director/conductor of the bank OF Canada is a director, who is appointed by the board of directors of the bank for a seven-year-old term of office. It can of the government will not dismiss. In case of the low-seized discrepancies between government and bank, the Canadian Minister of Finance can arrange in writing that the bank has to change their behavior. In practice the director determines the monetary policy independently of the government.

Directors of the bank OF Canada

• David A. Dodge (2001)
• Gordon Thiessen (1994-2001)
• John Crow (1987-1994)
• Gerald Bouey (1973-1987)
• Louis Rasminsk] (1961-1973)
• James Coyne (1955-1961)
• Graham Towers (1934-1954)

Related links

• Official web page (English/frz.)

Articles in category "Bank OF Canada"

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