Main opening hours for banks in Canada. Banking system of Canada
Introduction
Greetings from Canada. My name is Alexey Pavlenko.
Today I would like to talk about Canadian banks. They are quite different from the Ukrainian ones, and not always for the better.
When you move to Canada, your life starts with a clean slate. To better integrate into the new society, it is better to observe others and watch how they use banking products. Cash is practically not used here, mostly people use credit cards and write checks.
Credit history
It is very important to build a credit history, it will help in the future to buy a house on credit, a car or just some nonsense in installments. And opening a credit card will help this. You get a line of credit that allows you to spend money even if you don't have it. Believe me, at first it can come in handy. The main thing is to replenish the balance on time. Once a month, on a certain day, it is checked and if there is not enough money, then your credit history deteriorates, and you end up with money. But there are not such big fines. I don't remember exactly, like 20% per annum.
Credit card bonuses
Paying with credit cards is profitable. There are different credit card options available depending on your annual income. Both paid and free. For example, after each payment, 1-4% of the purchase amount is returned to me. For another type of cards, not money is accumulated, but points, which can then be exchanged for something. Supermarkets very often ask if there is a card with Air Miles - this is when air miles are added, which can be exchanged, for example, to increase service on the plane from economy to business.
It turns out that the more you spend, the more bonuses you get. A kind of game, like in children's centers, when machines issue paper tickets, which can then be exchanged for Chinese consumer goods.
Offers from major Canadian banks for new immigrants
There are 5 major banks in Canada: RBC, TD Bank, Scotiabank, BMO and CIBC. Their combined assets are over 4 trillion Canadian dollars. This is such a number with 12 zeros.
Bank's name | Asset size (CAD) |
---|---|
Royal Bank of Canada (RBC) | $1 150 357 000 000 |
Toronto-Dominion Bank (TD Bank) | $1 124 800 000 000 |
Bank of Nova Scotia (Scotiabank) | $894 961 000 000 |
Bank of Montreal (BMO) | $681 458 000 000 |
Canadian Imperial Bank of Commerce (CIBC) | $478 144 000 000 |
Each of these banks has programs for new immigrants. For example, you can easily open a bank account, give you a credit and debit card, a checkbook, a safe deposit box, a preferential exchange rate, and also exempt you from service charges for 6 months. Some clients also received iPads. Only, they say, it is necessary to remind about it.
But I made such a collective picture, it is better to check current offers on the websites of banks.
Canada's credit system has a complex institutional structure, which was strongly influenced by the credit systems of the United States and the United Kingdom. These countries have sought to strengthen their position in Canada by mastering national sources of funding. Credit institutions arose in the colonial period, trading companies performed the functions of bankers. Various branches of foreign credit institutions operated in Canada. First commercial Bank Canada was formed in 1817 as the Bank of Montreal. Then a number of specialized institutions appear: insurance companies, trust and mortgage companies and etc.
The First World War had a strong impact on the strengthening of commercial banks, and after it, non-banking institutions developed more rapidly: companies that finance installment sales and consumer credit, insurance and trust companies.
World economic crisis 1930s negatively affected the credit system, commercial banks, in particular, and other credit institutions. During this period, the Bank of Canada was created, government intervention in the credit system intensified, and the activities of specialized government institutions for lending to housing and agriculture were intensified.
The improvement of the credit system continued during the Second World War and after it, new types of specialized credit institutions appeared: leasing companies, state insurance companies, pension companies.
The modern credit system of Canada includes: the central bank of issue, commercial banks, specialized institutions. The Central Bank of Issue - the Bank of Canada - is united. The number of commercial banks is small; in the provinces operate credit institutions provincial level. The country's credit system is characterized by the presence of the following main financial institutions: commercial, trust and mortgage banks, insurance and investment companies... Private commercial, or so-called charter banks, enjoy complete freedom in commercial activities. They are governed by parliamentary charters. Charter banks are designed to serve industrial, commercial and public sectors economy. They carry out deposit operations, provide various kinds of loans, are engaged in foreign exchange transactions.
The Canadian Bankers' Association, of which the executive board is the supreme body, is at the head of the clearing system in Canada. The so-called Committee of Clearing and Information Centers is directly in charge of the work of the settlement system between banks. It has 10 regional clearing houses, called settlement centers, organized by it. Regional clearing houses exist in Ottawa, Calgary, Halifax, Montreal, Quebec, Regina, St. John, Toronto, Vancouver, and Winnipeg. Their activities are directly administered by local clearing associations under mandates from the Canadian Bankers' Association.
There are other institutions in the credit system, or, as they are called in the country, “non-bank financial intermediaries” (NBFP). They also implement Bank operations... This category includes credit unions and cooperative financial institutions serving primarily the French-speaking population. NBFPs are highly heterogeneous. In addition to these, these include independent trust banks and trust departments of commercial banks.
Like other leading capitalist countries, Canada has a developed insurance business. There is a fairly high degree of concentration of insurance capital in the country. American companies have firmly established themselves in the local insurance market; out of 172 foreign firms operating in Canada, 134 are from the United States. In turn, the American market acts main area external expansion of Canadian insurers. There are 71 Canadian Insurance Company(in the UK - 7, in Hong Kong - 6).
Central Bank of Canada (Bank of Canada)
Bank of Canada is the country's central bank of issue. It was established as a joint-stock company, but the holders of its shares could not be commercial banks and their employees, as well as foreigners. Government of Canada during 1935-1938 bought back the shares they owned from private owners, thereby strengthening the Bank as a central bank. Its activities are determined by the federal government, which is appointed by the Board of Directors. The Board of Directors includes the Deputy Minister of Finance. The Bank of Canada systematically reports to parliament on its activities.
The main functions of the Bank of Canada are: regulation money circulation and credit; keeping the course national currency in relation to other currencies; mobilization of the price level, the level of production and trade. The Bank of Canada issues banknotes into circulation, provides advances to commercial banks, manages cash reserves of commercial banks, regulates settlements between banks on clearing accounts, and regulates state gold and foreign exchange reserves.
The Bank of Canada is an agent of the federal government, manages the government's securities, its cash, provides links with central banks other states. The Bank of Canada does not buy shares in commercial banks, does not lend or accept deposits from individuals and companies.
The main place in the assets of the Bank of Canada is occupied by investments in government bonds. He also conducts operations with securities to place them on open market, interest on which is the most important source of his income. The main liabilities of the Bank of Canada are banknotes issued by it. Some of them are deposited in commercial banks as cash reserves. In addition, non-interest-bearing deposits of commercial banks are also included in the reserve. In addition, the Bank of Canada acts as a "bank of banks", i.e. is the lender of last resort for commercial banks, to which it provides short-term loans in small amounts, makes small investments in foreign securities. Commercial banks, as lenders to the Bank of Canada, are required by law to keep their reserves there. Deposits in the Bank of Canada are held by the government of Canada, large foreign central banks.
The main areas of activity of the Bank of Canada were formed during the period of strengthening state-monopoly tendencies, which contributed to the strengthening state regulation monetary system. This was especially evident in the post-war period, when the state switched to purposeful counter-cyclical regulation of the economy. The Bank of Canada was most active in regulating monetary circulation in the second half of the 1950s. The regulator of economic activity was discount rate, which changed in 1944, 1950 and 1955. in the range from 1.5 to 2.5%.
However, low performance interest rate policy, its lack of flexibility forced the Bank of Canada in monetary regulation to move to operations with securities on the open market. For the first time, the Bank of Canada conducted such operations to save the Canadian dollar during the 1962 currency crisis. At present, the Bank of Canada's policy is looking at a method for regulating the required reserve ratio of commercial banks. By changing them, the Bank of Canada increased or decreased the amount of funds of commercial banks for lending. In addition, since 1971, the Bank of Canada has set limits for increasing money supply in circulation. However, these measures do not always contribute to sufficient regulation of the economy.
Commercial banks of Canada
The main link in the credit system of Canada are private commercial, or privileged, banks. They have a huge impact on the structure of private investment and consumer spending in the country, lending to industrial, commercial and other enterprises.
During their existence, commercial banks have been constantly concentrated, i.e. mergers and acquisitions took place, their numbers declined, but their financial power increased. Canadian banking legislation, modeled on the English model, facilitated the establishment of large banks and their branches in the provinces, which allowed banks to maneuver funds in different geographic locations.
Commercial banks in Canada are depository banks, they take into account bills of exchange, accept demand deposits, open personal savings and time accounts for clients. In their portfolio, they hold securities of the government and private corporations, provide loans to various companies, individuals, carry out transactions with foreign exchange, and service export operations. Commercial banks issue credit cards and traveler's checks, provide services for storing valuables in special safes, carry out operations for the medium and long-term lease of machinery and equipment. They have evolved into large "financial service institutions."
The main type of active operations of commercial banks are lending operations. In lending operations of banks, the main place is occupied by short-term lending to private enterprises, and in recent times home loans and installment purchases are growing.
There is a tendency towards industry specialization in lending to industry, but recently the universalization of banking functions and the creation of banking consortia to finance large industrial facilities have been dominating. Commercial banks provide exporters mainly with short-term loans, while the state has assumed the function of long-term lending.
In the post-war period, the structure of investments of commercial banks in securities has changed. For a long time, commercial banks preferred government bonds, later they began to evenly distribute their cash between the securities of the state and corporations.
Savings accounts occupy a high proportion of the liabilities of commercial banks. From such deposits, banks receive the largest share of profits for lending operations. Increased contributions to foreign currency, which are used by banks for lending to foreign clients, to finance foreign trade transactions.
Recently, the network of branches of Canadian commercial banks has been expanding in other countries, the largest number of their branches, subsidiaries, agencies are open in the USA, Great Britain, and the countries of the Middle East. In essence, commercial banks in Canada are turning into international lending institutions, the head offices of which are located in Canada. Transnational banks include, first of all, all the leading "five" commercial banks in the country - Royal Bank of Canada, Canada Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia, Toronto Dominion bank ".
Other banking institutions
However, since the mid-1980s. The most striking manifestation of the undermining of the system of division of functions between the "four pillars" of Canadian finance and credit, which has existed for many decades, is the rapid expansion in the country of a completely new type of financial institution for Canada - a widely diversified investment banking firm, or, in the terminology of Canadian specialists, a "merchant bank ".
The rapid development of this type of financial institutions is largely due to the fact that “ merchant bank»Practically does not fall under the existing laws regulating the sphere of finance in Canada, and primarily under the laws restricting the rights of investors to buy large (over 10%) blocks of voting shares financial companies... Thus, the penetration of credit financial markets through institutions of this kind, it is most beneficial to the largest groupings of monopoly capital, which have the appropriate means to fully control the large organizations of "financial holdings" of such companies. They rely on the aggregate financial and economic potential of all credit and financial institutions controlled by them, and use the already established network of their clientele, their knowledge of the market, managerial experience, etc.
Heath International Corp. became the first and largest investment banking firm in Canada. - part of the giant family estates of Edward and Peter Bronfman. Another example of a "trading bank" is Central Capital Management Inc., which spun off from the Central Capital Corp. holding. Its main property is one of the largest Canadian trust companies, Central Trust. The entire group of financial institutions is controlled by two large Canadian businessmen, R. Cohen and D. Ellen. Own "commercial bank" - "Lancaster Financial Inc." organized by the financial conglomerate "Crownex Inc." (its central link is the large insurance company Crown Life Insurance).
If in 1985 there was only one such institution in the country, then in 1988 there were already about one and a half dozen, and this number is constantly increasing. "Merchant Banks" have spun off from literally all of the largest diversified companies in the field of finance. The formation of financial conglomerates from financial companies of various specializations has become the most important feature of the centralization of capital in the credit and financial sector of Canada.
Savings banks in Canada are not as widespread as they are in the United States. They mainly develop in Quebec and are controlled by "family" groups of French-speaking capitalists. The funds received from the population are invested by them in government bonds.
The most important role in the development of the banking sector of the Canadian financial capital was played by banking legislation. Special studies carried out in Canada have convincingly shown that the country's banking system has always been reliably protected from both competition from other financial industries and from financial institutions under foreign control. As a result of this protection, banks were able to extract monopoly high profits.
Widely used financial capital Canada in its own interests and the apparatus of administrative regulation (regulation) of various industries and spheres of the country's economy. This primarily applies to market regulation valuable papers(stocks and bonds) corporations. Thus, a number of special acts regulating the securities market (this area is under the jurisdiction of the provinces) complements the effect of tax laws in the direction of further concentration and centralization of capital in the country.
In particular, corporations registered in the province of Ontario are subject to the rule that when an “outside shareholder” buys 20% or more of the voting shares of a company at a price higher than the market average by 15% (this is typical when a transaction is concluded between a large buyer and large seller represented by the leading corporations in Canada), he is obliged to offer the same "favorable" price to all other small share holders. Thus, the law often forces a corporation, which was simply planning a large investment in shares, to completely take over a particular company.
Among other laws regulating the securities market, a little-known provision on the structure of investments should be highlighted. pension funds In Canada. Throughout the post-war period, Canadian pension savings funds were required to invest at least 90% of all funds in stocks and bonds of Canadian firms only. Provided as a stimulant economic development Canada ", this measure played an invaluable role in the process of concentration economic power in the country.
An important feature of the Canadian economy is its very close ties with the US economy: about 20% of Canadian products are exported to the US, and the financial markets of these two countries are highly integrated. The second feature that distinguishes Canada from most other industrial developed countries, lies in the large share of the extractive industry in its gross domestic product... Since raw materials account for a large proportion of exports, Canada's terms of trade always improve during periods of rising global commodity prices and worsen during periods of declines.
Monetary and exchange rate policy in Canada is aimed at strengthening the national currency, which is achieved through inflation control and stabilization exchange rate Canadian dollar. To this end, the Bank of Canada sets targets for inflation rates for 3-5 years and intervenes on foreign exchange markets in exchange for foreign currencies.
Also, on the present stage The main instrument of monetary policy in Canada is the movement of government-owned deposits from commercial banks and other clearing institutions to the Bank of Canada, a drawdown, and to clearing banks, a redeposit. In general, the latest trends in foreign exchange and monetary policy Canada testifies to the interest of monetary authorities in maintaining their influence on the formation of the main proportions of foreign economic exchange and structure exchange rates, on the commitment to combating inflation and ensuring, on this basis, sustainable economic growth rates.
Based on the book "Money. Credit. Banks: Textbook for universities / EF Zhukov, LM Maksimova, AV Pechnikov and others; Edited by Professor EF Zhukov" - M .: Banks and exchanges, UNITI, 1999 .-- 622 p.
- Royal Bank of Canada (RBC) is one of the largest banking groups in North America. The main corporate offices are located in Toronto, while the official headquarters are in Montreal. Total assets as at 31 July 2012 were over CAD 834.394 billion.
- Bank of Montreal (BMO) is one of the five leading banks in Canada, with over 900 branches throughout the country and serving over 7 million customers. The market capitalization of the company as of September 18, 2012 was about $ 39 billion.
- Business Development Bank of Canada (BDC)- not a depository bank, serves only small and medium-sized enterprises.
- Canadian Imperial Bank of Commerce (CIBC) - one of the five largest banks in Canada, was formed on June 1, 1961 as a result of the merger Canadian Bank of Commerce(founded in 1867) and Imperial Bank of Canada(founded in 1875).
- Citibank Canada- a division of a large American financial holding Citigroup, headquartered in Toronto and offices in Montreal, Calgary, Vancouver and London (a city in the south of Canada, in the province of Ontario). Has been working in Canada since 1954.
- Citizens Bank of Canada- a virtual bank with a large number of banking services.
- Credit Union Central of Canada- operator and coordinator of credit unions (credit cooperatives) of Canada. At the end of 2009, there were 485 credit unions affiliated with Credit Union Central of Canada, with total assets of $ 133 billion.
- HSBC Canada- formerly called Hongkong Bank of Canada, is part of the British banking group HSBC. HSBC Canada is Canada's seventh largest bank and largest foreign bank in the country. Has offices in every province with the exception of Prince Edward Island.
- ING Direct Canada- Online Banking, tentatively called ING Bank of Canada, is a member of ING Group, one of the largest financial groups in the world. Offices and financial activities localized in Toronto and Vancouver.
- Laurentian Bank of Canada- the main bank of the province of Quebec (155 branches), also has one branch in Ottawa. Net income for October 2009 was $ 105.5 million.
- National Bank of Canada is one of the ten largest banks in Canada and serves more than 2.35 million customers. The bank has about 450 branches located mainly in the provinces of Quebec, Ontario, New Brunswick, as well as branches and offices in Havana, Hong Kong, London, Paris, Nassau, New York and Florida.
- PACE Credit Union Is a credit union in the province of Ontario that provides a full range of financial services to its members and acts as a financial cooperative that is owned and democratically administered by its members. Membership is open to all Ontario residents, businesses, and non-profit organizations.
- - was founded in 1832 and is currently one of the largest banks in Canada. Most widely represented outside the country compared to other Canadian banks.
- - was founded in 1955 and is currently the second bank in Canada in terms of market capitalization... Serves over 17 million clients worldwide.
- Vancouver City Savings Credit Union(usually called Vancity) - the largest English-speaking credit union in Canada with assets of about 13 billion Canadian dollars, operates in the province of British Columbia. At the end of 2008, it had over 407 thousand members.
Largest banks in Canada
Bank | Net profit (US $ 12/2009 billion) |
Assets (US $ 12/2009 billion) |
|
1 | Royal Bank of Canada | 3.58 | 608.05 |
2 | Toronto-Dominion Bank | 2.90 | 517.28 |
3 | Bank of Nova Scotia | 3.29 | 460.93 |
4 | Bank of montreal | 1.66 | 360.62 |
5 | Canadian Imperial Bank | 1.58 | 316.51 |
6 | National Bank of Canada | 0.94 | 125.88 |
7 | Laurentian Bank | 0.11 | 20.58 |
Immigrants may be more difficult due to the lack of credit history... You benefit from the fact that between banking institutions high competition. In case of refusal, you can always cross the road and open an account with another bank.
Most often, the first year of service is free - this is done in order to attract new customers. Do not hesitate to walk around 2-3 banks and find out the conditions, in the long run it can save significant funds. Also consider opening hours and the convenience of branch locations relative to home or work. To open an account, you will need two original documents, for example a passport and a driver's license.
Major Canadian banks (RBC, BMO, TD, CIBC and Scotiabank) offer special rates for new immigrants. Do not forget to take a look at them, you can often open an account on very attractive terms.
Price
Keep in mind that each of these banks has monthly mandatory payments for chequing accounts. The average Canadian spends on banking service about $ 220 per year. Now you understand how profitable it is to get into the "First year of service as a gift" promotion! Depending on the number of transactions, the bank charges from $ 5 to $ 30 for its services every month. These fees can be avoided if the balance is maintained above a certain level - $ 1000- $ 1500.
In Canada, people are used to not handing over cash, but writing a check indicating the amount. In 90% of cases, you will have to pay rent in this way. A 100-page checkbook will cost you about $ 25-40.
For the use of foreign bank cards there are often substantial fees, so you need to open an account in Canada as soon as possible.
ATM machines
Just like in Russia, it is better to use “home” ATMs to withdraw cash. The commission for withdrawing cash in someone else's ATM (Automated Teller Machine) usually costs one and a half dollars, and if it is a private ATM, it is much more expensive - from $ 1.50 to $ 4.50, and maybe more. They should be avoided and used only as a last resort.
Top Canadian banks for immigrants
- Vancouver: Free checking account available from Coast Capital Credit Union. To withdraw cash without commission, you can use Coast Capital and HSBC ATMs.
- President's Choice online bank offers free account service, unlimited number of transactions, free checkbooks. For cash withdrawals, you can use the CIBC infrastructure.
Maintaining an account with other banks will cost a minimum of $ 4 per month, free cash withdrawals are limited, and a checkbook starts at $ 25.
Credit cards
When choosing a bank, it would be nice to take a closer look at the future of credit cards. In addition to convenience, many banks offer profitable programs rewards for purchases: free miles, discounts at hypermarkets, online stores, and so on. When analyzing, take into account the interest-free period, the rate and additional commissions, for example, when withdrawing cash. Canadians cherish their credit ratings from an early age by paying off payments on time.
RBC Dexia issues credit cards without checking the borrower's history, which solves the problem of its absence. This option is only available to Canadian citizens and permanent residents. Scotiabank also offers a similar promotion for new immigrants.