EC223 Chapter 10: Ch 10
Document Summary
10 economic analysis of financial regulation p. 257 (224 5th edition) Outline: canadian financial regulators, major financial regulations. The future of financial regulation readings: skip pp227-231 cdic developments. Bank of canada: chartered banks, tmls, cucps. Office of the superintendent of financial institutions (osfi) http://www. osfi-bsif. gc. ca/eng/wt-ow/pages/findat. aspx: depository taking institutions, life insurance, p&c (property and casualty) insurance, pension plan. Set capital adequacy, accounting standards, conduct bank audits. Life insurance companies: p&c insurance compensation corporation, property and casualty insurance companies. Note: only first three need to remember what they do. Major regulations (make sure no financial crises, prevent deal with the problem: gov"t safety net, government safety net: deposit insurance and the cdic short circuits bank failures and contagion effect, cdic was created in 1967. Two primary methods to handle a failed bank: payoff method: allow the bank to fail, purchase and assumption method: finding a willing merger partner who takes over all of the failed bank"s liabilities.
