ECON 3430 Study Guide - Midterm Guide: Federal Deposit Insurance Corporation, Canada Deposit Insurance Corporation, Bank Panic

• School: York University
• Department: Economics
• Course: ECON 3430
• Professor: Brenda Spotton- Visano

Document Summary

4 pillars" of financial sector; banking, trust companies, insurance & brokerage (govt made sure each was distinct) & regulatory attitude caused separation of the 4 pillars in the start of 21stc. Depository institutions (chartered banks, trust & loan companies, credit unions, caisses populaires, alberta treasury branch). Cad established a branch banking system, with each bank having many offices. In the past, banks took deposits & gave depositors credit in their account or bank notes. Coins were kept in reserves or lent out to merchants/govt (consumer lending didn"t occur until 20thc) There was no central banks, only private banks issuing notes (reason they didn"t print unlimited notes. {1}: they had to be willing to exchange notes for gold/silver, {2}: owners had double liability-bank went bankrupt they"d lose capital & would be billed again, {3}: need a special act of parliament to issue notes) After confederation in 1867, colonies came together to create a single monetary system with common rules.