BU111 Study Guide - Final Guide: Toronto Stock Exchange, Protectionism, Analysis Paralysis
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BU111 Full Course Notes
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Financial institutions facilitate flow of money from sectors with surpluses to those with deficits, by attracting funds into chequing and savings accounts. Lines between pillars have been blurred due to deregulation. (privately owned, profit seeking firm that serves individuals, Financial pillar #1 - chartered banks non-business orgs, and businesses as a financial intermediary) Five largest banks account for 90% of total bank assets. Bank act limits foreign-controlled banks to <8% of total domestic bank assets. Major source of short-term loans for business. Opened up new revenue streams for canadian banks. Allowed banks to alter their historical role as intermediaries b/n depositors and borrowers. The big six asked the government to get tougher with mortgage rules to cool off the housing market. they responded by moving down-payment from 5% to 10% People are turning to electronic banks (ing direct, president"s choice financial) that pay higher interest on savings accounts.
