Bank of Canada

Financial Terms Canada -> Bank of Canada

The Bank of Canada was created in 1934 and since then it serves as Canadian central bank. The bank is headquartered in the Canadian capital Ottawa. Before the Bank of Canada establishment, the Bank of Montreal (the oldest Canadian bank) served as Canadian central bank. The Bank of Canada act defines the responsibilities of the Bank of Canada, some of which are to provide an economic environment with low and stable inflation, financial stability and safe and sound currency.

The Bank of Canada has several main responsibilities. The bank is responsible for the Canadian monetary policy design and implementation. The Bank of Canada is the only issuer of Canadian banknotes, responsible for designing, producing, and distributing Canada's banknotes. The Bank of Canada also acts as a banker to Canadian Government. The bank provides liquidity to Canadian commercial financial institutions and in case of emergency acts as a lender of last resort. The bank also endorses secure and efficient financial system.