Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
62% - Often

Bank of Canada

Bank of Canada
Is a company established in 1935.

Synonyms:Banque du Canada, main bank
Acronyms &
Relevant locations:Ottawa, Ontario, Canada
Year established:1935
Notes:Canada's central bank.
Filed Under: companies-associations, financial-banking, investments, mortgages
Tags: banking

Definition of Bank of Canada (BC, BOC)

Bank of Canada (BC, BOC)
1. Canada's central bank, manager of monetary policy, and "lender of last resort." The Bank of Canada is responsible for monetary policy and promotes a safe and sound financial system in Canada. The bank is also the sole issuer of banknotes and currency in Canada, and manages funds and does central banking services "for the federal government, the Bank and other clients." The Bank of Canada (Banque du Canada in French) is a Crown corporation of the Government of Canada.

Related Terms and Acronyms:

  • Canada Mortgage and Housing Corporation (CMHC)   The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
      ➥  Insures Canadian mortgage lenders.
  • commerce   The systems and activities that impact business and trade within a nation and abroad.
  • Finance Canada   Federal department responsible for Canada's economic performance and regulation of financial institutions.
  • fiscal policy   The use of government spending and taxation policies to influence the economy.
  • prime lending rate (PLR)   The rate of interest charged on loans by chartered banks to their most creditworthy customers.
      ➥  Bank of Canada's prime (best) lending rate.
  • prime rate   The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
  • regional bank   A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the province in which it is located. Usually called a Credit Union in Canada.
  • schedule ii banks   A designation in the Bank Act that refers to foreign-owned banks and closely held Canadian banks, i.e., banks in which an owner may hold more than 10% of outstanding stock.
  • schedule iii banks   Foreign banks not incorporated under the bank act that are allowed to conduct business in Canada.
  • settlement points   Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.

More Related Terms and Acronyms

Broad and Narrow Associations

[Bank of Canada]
  • monetary policy report update (MPRU) — Acronym   Updates on the monitoring of inflation, interest rate targets and economic outlooks within Canada.
  • Bank of Canada Non-Energy (BCNE) — Canada, Low Relevance
      ➥  Commodity price index.

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