- published: 08 May 2015
- views: 19365
The Bank of Canada (French: Banque du Canada) is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament (the Bank of Canada Act) on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada. The Minister of Finance (on behalf of Her Majesty in right of Canada) holds the entire share capital issued by the Bank. "Ultimately, the Bank is owned by the people of Canada."
The role of the Bank is to "promote the economic and financial well-being of Canada."
The responsibilities of the Bank are: monetary policy; sole issuer of Canadian banknotes and currency; the promotion of a safe, sound financial system within Canada; and funds management and central banking services "for the federal government, the Bank and other clients."
The Bank headquarters are located at the Bank of Canada Building in the nation's capital Ottawa.
For many years, Canada did not have a central bank. Each of the nation's large banks issued its own currency and there was little government regulation of the nation's money supply. The federal finance department only issued small and very large denomination bank notes ($5 and under, and $500 and higher.) The Bank of Montreal, then the nation's largest bank, acted as the government's banker. Canada, with its extensive branch banking, had a very stable banking system. There was deemed to be little need for a lender of last resort and the banking system was not hit by the same seasonal liquidity problems as banks in the US. The banking system was regulated by the Canadian Bankers Association that worked in close concert with the government.
Canada ( /ˈkænədə/) is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. Spanning over 9,900,000 km2 (3,800,000 sq mi), Canada is the world's second-largest country by total area, and its common border with the United States is the longest land border in the world.
The land that is now Canada has been inhabited for millennia by various Aboriginal peoples. Beginning in the late 15th century, British and French colonial expeditions explored, and later settled, along the region's Atlantic coast. France ceded nearly all of its colonies in North America in 1763 after the Seven Years' War. In 1867, with the union of three British North American colonies through Confederation, Canada was formed as a federal dominion of four provinces. This began an accretion of provinces and territories and a process of increasing autonomy; the Canada Act 1982 severed the vestiges of legal dependence on Britain.
John Gilbert "Jack" Layton, PC (July 18, 1950 – August 22, 2011) was a Canadian social democratic politician and Leader of the Official Opposition. He was leader of the New Democratic Party from 2003 to 2011, and previously sat on Toronto City Council, occasionally holding the title of "Acting Mayor" or "Deputy Mayor" of Toronto during his tenure as city councillor. He was the Member of Parliament for Toronto—Danforth from 2004 until his death.
Son of a Progressive Conservative cabinet minister, Layton was raised in Hudson, Quebec. He rose to prominence in Toronto municipal politics where he was one of the most prominent left-wing voices on city and Metropolitan Toronto councils, championing many progressive causes. In 1991, he ran for mayor, losing to June Rowlands. Returning to council he rose to become head of the Federation of Canadian Municipalities. In 2003, he was elected leader of the federal NDP on the first ballot of the convention.
Under his leadership, support for the NDP increased in each election. The party's popular vote almost doubled in the 2004 election, which gave the NDP the balance of power in Paul Martin's minority government. In May 2005 the NDP supported the Liberal budget in exchange for major amendments, in what was promoted as Canada's "First NDP budget". In November of that year, Layton voted with other opposition parties to defeat the Liberal government over the findings of the Gomery Commission. The NDP saw further gains in the 2006 and 2008 elections, in which the party elected 29 and 37 MPs, respectively.