Focus: Fast Facts About the Canadian Banking System (2024)

FAQs

What are the facts about the banking system in Canada? ›

Canada has one of the most accessible banking systems in the world – more than 99 per cent of Canadian adults have an account with a financial institution. Number of people employed by Canadian banks in other countries in 2022: more than 130,000.

The banking system in Canada groups financial institutions into five main categories: chartered banks, trust and loan companies, the cooperative credit movement, life insurance companies, and securities dealers.

Canadian consumers also help to keep banks profitable by paying for things like chequing accounts, and paying greater fees than U.S. consumers, Cheng says. More concentrated regulation is another key factor that experts cite to explain stronger Canadian banking stability.

Our main role is “to promote the economic and financial welfare of Canada,” as defined in the Bank of Canada Act.

Canada has one of the most accessible banking systems in the world – more than 99 per cent of Canadian adults have an account with a financial institution. Number of banks offering financial products and services to Canadian consumers, including bank accounts, credit cards, loans and investments: 40.

Office of the Superintendent of Financial Institutions

OSFI is an independent federal government agency that regulates and supervises banks, insurance companies and private pension plans in Canada to determine whether they are in good financial condition and meeting their regulatory and supervisory requirements.

Net interest income is generated from what is known as the 'spread'. The spread is simply the difference between the interest a bank earns on loans extended to customers and the interest paid to depositors and other creditors for the use of their money. Fifty-two per cent of bank revenue earned is net interest income.

The banking industry helps Canada grow, contributing 3.6% (or over $70 billion) to Canada's gross domestic product (GDP).

The bank does not issue coins; they are issued by the Royal Canadian Mint.

Banking services. Both countries offer savings and checking accounts, yet terms and features vary. In Canada, savings accounts may offer higher interest rates, while US checking accounts often provide more robust services like ATM access and check-writing capabilities.

How are Canadian banks different from us? ›

The FDIC guarantees the safety of a depositor's accounts in U.S. member banks up to $250,000 USD per depositor for each deposit ownership category in each insured bank. In comparison, the CDIC insures Canadians' deposits held at Canadian banks up to $100,000 CAN. To close a checking account, you must contact the bank.

When you bank with many Canadian banks, your funds amount up to $100,000 is insured by the CDIC (Canada Deposit Insurance Corporation) which is a Federal Crown Corporation. This means that if something does happen to the banks, the CDIC can pay you out your insured deposits in just a matter of days though.

A term used to describe the main types of financial institutions: banking, trust, insurance and securities.

The Bank of Canada (BOC) is Canada's central bank, and is located in Ottawa, the capital of Canada. As central bank, the BOC oversees the country's monetary policy including setting interest rates and modulating the money supply. The BOC's mandate is to promote economic stability in Canada.

The chartered banks accept deposits from the public and extend loans for commercial, personal and other purposes. Other financial institutions, known as “near-banks,” perform some of these functions, but banks are the only institutions that can increase or contract the basic money supply.

The Bank of Canada, within its Funds Management function, is responsible for providing banking services to specific types of clients, thereby support- ing the implementation of Canada's monetary policy framework, the well- functioning of the domestic financial system and global financial stability.