In the essay I will discuss the main differences between the U.S and China banking systems. I will start by focusing on the over arching structure both banking systems use. I will talk about the check and balance system both countries use in order to regulate banks. I will go into depth on the different ways both countries used monetary policy in order respond to current and past economic slow downs. Compare and contrast the different stipulations that each banking system put in place in order to create economic prosperity and prevent a turn for more economic slowdown.
Although the Canadian Bank oligopoly has traditionally been uncontested, the environment in which they operate is experiencing significant change. In order for retail banks to remain relevant in a decade, they must make significant changes to their business model. International political landscape tensions hinder international ambitions of banks and while the increased regulation is viewed as an additional burden, it is currently one of the rare forces keeping new entrants from dominating the entire industry. The Canadian population is facing a significant shift affecting the banks environment, their customer base includes an increasing proportion of millennials, women and visible minorities. Canada has the second largest population of foreign born habitants, and due to mass migration this trend will intensify.
1. a) i) The content of the table is about Canada’s economic and financial situation divided into four sectors: real sector, fiscal sector, financial sector, and external factor. Each of the four sectors is divided into smaller categories. For example: real sector is divided into national accounts, production index, labor market, prices indices. The other three factors are also divided into smaller categories just like the real sector. In addition, this table has the most recent GDP to show the success of Canada’s economy. The overall goal of the data is to show Canada’s recent economic situation.
There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).
There are always many differences and similarities between two countries, even they are in close geographical area. Both United States and Canada are on the America continental, therefore the United States and Canada are in close geographical location and in the neighborhoods, most people think that culturally they are same .But this is not true. Despite all similarities between these two countries, there are many differences between them.
I will be writing about the difference between Canada economy and USA’s Economy. I will have three points about why they should be the same, Why they should stay the same, WHy they should be the same type of economy and The last paragraph is about the differences
The global economic crisis of 2007-2008 had minimal impact on Canada. The financial banks did not require a bailout and the banking system was relatively strong. Canada is ranked first among more than 140 countries for banking stability because they have totally avoided systemic troubles. They have performed better than most G-7 economy during the global recession and the recovery. Canada sub-prime loans accounted for less than 5% because the majority of the were traditional
To begin, a brief history recap of the financial crises in 2008 will be given. Following that will be a breakdown of how the financial systems were set up in Canada and the U.S. We will then, in detail, discuss the Canadian and the U.S financial markets, in particular, the housing market and how each country was affected by the 2008 financial crisis. Lastly, we will proceed to evaluate the overwhelming differences between Canada and the U.S; from their core financial system to mortgages that allowed the Canadian market to remain excluded from the dire consequences of the US market recession, which followed shortly after the financial crisis.
To the surprise of most people the biggest trade relationship in the world is not USA and China or USA and Saudi Arabia, but it is actually our unsuspecting neighbors to the North. Canada exports a whopping 73% of its goods to the United States and imports 53% of its goods from them. This relationship consisted of $347.8 Billion in imports and $312.4 Billion in exports in 2014. Crude oil is the biggest export in Canada accounting for 18% of total exports, with cars following close behind with 10%. As close as this relationship is there is some very key differences in the way that the United States and Canada treat businesses and regulate the economy. The US has always been business first, and following the idea that the market will choose
Canada’s Banking Industry is the section I used and think is useful for my essay because it explains the banking industry very well. This section provides a mass variety of information about the industry, some of which were not talked about in my other references. This is a reliable source because it is the textbook I use for my International Business class. Lorie Guest has also written, The World of Business: A Canadian Profile. Along with writing business textbooks, she is also a high school business teacher in Waterloo, Ontario.
The Scotiabank is one of the world’s most popular banks in North America and is located in Canada, Halifax. Founded in 1832, Scotiabank came to be the second largest bank in Canada. A year after its development, Scotiabank paid out its first dividend to shareholders. Having marked the method in history, it was carried out through the golden era to the modern era and is yet continued to this day. Scotiabank provides innovative financial products and services to individual customers, small/medium sized business, corporations and governments across the world.
The Royal Bank of Canada was founded in 1869; Royal Bank was Canada’s largest financial institution with assets of Canadian$245 billion in September 1997. Royal bank was ranked first or second among Canadian financial institutions in earnings, market capitalization, and in virtually every financial service it delivered. The bank had 10 million personnel, businesses, government, and financial institution clients that were serviced through one of the world’s largest delivery networks. This network included more than 1,600 branches and over 4,000 automated banking machines. In Canada it was selected as number one among all companies regardless of industry in the categories of “Leader in Investment Value,” “Leader in Responsibility” (which measured equality and charity), and “Leader in Financial Performance.” Royal Bank operates to date in over 30 countries and has over 100 delivery units. The bank was strongly represented in the major international financial centers of the world, including New York, London, Frankfurt, Tokyo, Hong Kong, and Singapore. Royal Bank was located through Latin America and Europe. Business clients were offered services in corporate banking, trade financing, treasury services, and
Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in
Before the China’s reform and opening-up in 1978, China for a long time to implement the planned economic system and the banking system is highly centralized. There wasn’t truly independent commercial bank in China between 1949 and 1978 and The People 's Bank of China is the only bank in this country. In that period, The People 's Bank of China took charge of commercial banking business, along with making macroeconomic policies and monetary policy. Since China began to implement market overhauls in the 1978, the Chinese banking industry developed in a more commercial and more market-oriented direction. It is reasonable to divide the 30-year- development into the following three periods.
From World War II throughout 1970s, banking was a comparatively steady business with comparative minority bank collapse. But following that episode, the banking business has been high and low with deregulation and liberalization as key drivers of robust rivalry, interrupted by a strapping rise in the amount of breakdown throughout 1980s and 1990s.