Toronoto Financial Institutions

Toronto Financial Institutions

Very broadly defined, a financial institution supplies financial services to its clients. A bank provides such services and is chartered by the respective government in that respect. Other similar word uses may refer to slightly different meanings such as the World Food Bank. The World Bank and IMF (International Monetary Fund) are prominent international business world players.

There is a distinction between commercial (for profit) and central banking.

Individuals cannot open an account with the central bank, only the government; individuals must go to the commercial banks. Statistical tools and mathematical models greatly facilitate financial forecasting.

Proficiency in the banking industry most often than not requires a thorough knowledge of the underlying numerical concepts. Central banks operate in most countries to ensure financial stability and avoid the bank panics and failures seen during the Great Depression. Many other organisations collectively make sure that the country’s financial health is well monitored.

Davenport Road near Bay Street. Illustration by Elena

In Canada, in addition to the central bank (the Bank of Canada), the Canadian Deposit Insurance Corporation (CDIC) protects patrons’ funds within certain conditions. The American counterpart is the Federal Deposit Insurance Corporation (FDIC).

A skeptical point was raised: if one of the big five banks were to fail, then the whether they needed protection or not would take second place to the disarray that would likely have engulfed the economy. Perhaps. But perhaps also, having the system in place prevents any such awful outcome, just as in the psychological construct of the self-fulfilling prophecy. Aside from major Canadian banks discussed at length elsewhere on the present Website, there are many insurance companies, trust funds and credit unions.

The United States may dominate the continent economically, but Canadians can expect to live the longest and face a lower infant mortality rate.