The main link of credit system of Canada consists of private commercial, or preferred, banks. They have a huge impact on the structure of private investment and consumer spending in the country, allowing industrial, commercial and other enterprises.
During its existence, the commercial banks are constantly concentrated, i.e. occurred mergers and acquisitions, their numbers are reduced, but financial strength was increased. The canadian law on banks, created by an English Park, was instrumental in the organization of major banks and their branches in the provinces, which allowed banks to maneuver funds in different geographical locations.
Commercial banks are Deposit Canada, they include promissory notes, accept deposits, open for customers ‘ individual savings and term accounts. In its holding portfolio securities of the government and private corporations, provide loans to various companies, private persons, carry out transactions with currency, service export operations. Commercial banks issue credit cards and traveler’s checks, provide services for the storage of valuables in a special safe, carry out operations on medium-and long-term rental of machinery and equipment. They turned into a large “institutions to provide financial services”.
The main type of active operations of commercial banks are lending operations. In the loan operations of banks is short-term lending to private enterprises, and recently there is a growing volume of loans in housing construction and purchases in installments.
In lending industry shows a pattern of industry specialization, but recently dominated the universalization of banking functions, creation of Bank syndicates for financing large industrial projects. Exporters, commercial banks provide mainly short-term loans, and the function of long-term loans assumed by the state.
In the post-war period has changed the structure of commercial banks investment in securities. For a long time, commercial banks prefer government bonds, but later they began to spread their funds between securities of government and corporations.
The high liabilities of the commercial banks the share savings account. Against these deposits the banks receive the largest share of profit for conducting loan business. Expanded deposits in foreign currency used by banks for lending to foreign customers to Finance foreign trade transactions.
Recently expanded the network of offices of the canadian commercial banks in other countries, the largest number of branches, subsidiaries, agencies open in the US, UK, Middle East. Essentially commercial banks Canada turn to international lending institutions, main offices of which are located in Canada. Transnational banks in the first place could include all leading the top five commercial banks in the country, “Royal Bank of Canada”, “Imperial the Canadian Bank of Commerce, Bank of Montreal”, “Bank of Nova-Scotia”, “Toronto-dominion Bank”.