Canadian Chartered Banks
Banking in Canada is considered as of the most efficient and safest banking systems all over the world. With its grand scale of customer services, use of cutting age technology and extensive network of debits cards, internet banking and phone banking has made it one of the world’s most advanced banking systems. According the Canadian Ministry of Finance of Canada' banks are termed as Chartered banks
and have over 8000 branches with numerous automated banking machine throughout the country. Financial institutions whose major responsibility is to accept deposits and safeguard monetary assets from individual and large scale organization and to lend the collected money on the basis of ascertained interest are known as chartered banks.
Chartered bank in Canada provide various service to the customers which include lending to individuals, deposit funds from private and large scale organizations. Chartered banks float a currency so they process all customers’ normal transaction whereas they lend the accumulated sum to the individuals to enhance the economic growth of the country.
With the rise in banking sector of Canada many Chartered banks have come up age providing high class services to the customers. The charted banks in Canada are normally classified into two different categories:
1) The Big Five
2) Smaller second tier banks
The big five of Chartered banks is made of Royal Bank of Canada
, the Toronto Dominion Bank
, the Bank of Montreal
, the Bank of Nova Scotia
, and the Canadian Imperial Bank of Commerce
. The major Canadian economic growth and Chartered banks industry revolves round these five banks which are also called as international financial conglomerate each having huge Canadian Banking divisions. These five banks are termed as the Schedule I banks under the bank operating law of Government of Canada that are widely used by major part of the Canadian population the Big Five forms and integral part of the country’s economy.
The smaller second tier bank consists of other private and state backed banks that operate in limited area and with subsequent facilities to the customers. These banks too form a core group in the banking industry on Canada. Banks like AMEX Bank of Canada
, Citibank Canada
, HSBC Bank Canada
, ING Bank of Canada
and ICICI Bank Canada
form the second tire of chartered bank in Canada.
The Canadian Bank act distinguishes chartered bank into three groups:
These banks are allowed to accept deposits and are not subsidiary of a foreign bank
These banks can take deposit and are termed as subsidiary of a foreign bank
These banks have certain restriction in their working conditions and are termed as fully foreign banks.
The main office of regulating bank in Canada is the Office of the Superintendent of Financial Institutions also known as OSFI which has the authority to utilize the bank act.
Though the chartered bank in Canada are allowed to work independently but most foreign banks applying in Canada has to go through strict government radar for assuring the quality service to the customers. The OSFI in accordance to the Bank act regulates all the law and rules for the chartered banks in Canada and has the sole responsibility of handling cases related to banking in the whole country.
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