Bank of Canada Act
Encyclopedia
The Bank of Canada Act is a piece of Canadian federal
legislation
, adopted in 1934, which created the Bank of Canada
, the cornerstone of central banking system in Canada.
The act is part of the Statutes of Canada
.
Prior to 1934, Canada had no central bank and fragmented control of the banking system.
The Canadian Bankers Association
took the role of regulating the bank system since 1891 and the Bank of Montreal
was the government's banker.
W. F. MacLean, MP for South York MP presented the idea of a central bank to Parliament in 1913, but the idea was shot down by then Prime Minister
Sir Robert Laird Borden.
It was initially a private bank and became a government owned corporation in 1938.
Amendments to the act allowed the Bank of Canada
to take over currency printing in 1949.
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
, adopted in 1934, which created the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
, the cornerstone of central banking system in Canada.
The act is part of the Statutes of Canada
Statutes of Canada
The Statutes of Canada consists of the compilation of all the federal laws of Canada passed by the Parliament of Canada since Confederation in 1867. The Revised Statutes of Canada is the consolidation of the Statutes of Canada incorporating amendments and Acts that have been added since the last...
.
Prior to 1934, Canada had no central bank and fragmented control of the banking system.
The Canadian Bankers Association
Canadian Bankers Association
The Canadian Bankers Association is a financial lobbying group that works on behalf of 52 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 267,000 employees. The CBA was organized in Montreal in 1891, making it one of Canada’s oldest interest...
took the role of regulating the bank system since 1891 and the Bank of Montreal
Bank of Montreal
The Bank of Montreal , , or BMO Financial Group, is the fourth largest bank in Canada by deposits. The Bank of Montreal was founded on June 23, 1817 by John Richardson and eight merchants in a rented house in Montreal, Quebec. On May 19, 1817 the Articles of Association were adopted, making it...
was the government's banker.
W. F. MacLean, MP for South York MP presented the idea of a central bank to Parliament in 1913, but the idea was shot down by then Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
Sir Robert Laird Borden.
It was initially a private bank and became a government owned corporation in 1938.
Amendments to the act allowed the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
to take over currency printing in 1949.
See also
- Federal Reserve ActFederal Reserve ActThe Federal Reserve Act is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender...
- Exchange Fund Ordinance
- Bank of England Act 1716Bank of England Act 1716The Bank of England Act 1716 was an Act of the Parliament of Great Britain.The long title of the Act was:It was partially repealed by the Statute Law Revision Act 1870, the Statute Law Revision Act 1887, the Bank Act 1892, the Bank of England Act 1946, and the Statute Law Revision Act 1948.All...
- Canada Deposit Insurance Corporation ActCanada Deposit Insurance Corporation-External links:*** Official CDIC site*...