U.s. Sneezes Canada Will Catch A Cold

This paper will argue how Canada's housing market is at an all time high, we are known in Vancouver for having the most expensive housing market. This expensive market is not just a Vancouver problem, it is an issue growing through out the nation and is depriving the average citizen to be able to purchase a house in there life time. There is a major issue with the state of our market and how it effects out current citizens. Issues have been arising where the average wage in Vancouver is estimated at seventy seven thousand per family house hold, yet the average costing home as reached between five hundred thousand in the

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.

Within the past decade, Canada - specifically ontario, has seen and experienced a rapid increase in its housing market. Although some speculate a crash nearing, its strong growth in Ontario has become one of this decade’s largest issues. During the year of 2016 the average price of a home in the metropolitan area was $688,011, however, prices have increased by 33% in 2017 making the average home worth $916,000 dollars. This issue presents many difficulties as it affects Canada’s economy, it’s residents, immigrants, and more. Although some have tried to pass bills in order to reverse the increase, the presented plans are much worse. Take for example, Kathleen Wynne's proposed “foreign buyers tax”. With a plan as such being passed, all of

“The Bank of Canada immediately took over bank note operations from the Department of Finance. Offices of the Receiver General across the country became agencies of the new central bank. The Foreign Exchange and Securities Divisions started work right away, and a Research Division was established to advise on financial developments and business conditions” (Watts, G., & Rymes, T., 1993, p.9). Vardy, J. states in the “The Bank of Canada: An illustrated history” that the Bank of Canada was “privately owned with shares (at a par value of $50) sold to the public. Soon after the Bank began operations, a new government introduces an amendment to the Bank of Canada Act to nationalize the institution. In 1938, the privately held shares were purchased by the government and the Bank became entirely publically owned” (Watts, G., & Rymes, T., 1993, p.9) as it remains today.

Throughout history the Canadian and American banking systems have always taken separate approaches to the financial sector. There are many factors that influence the differences between the banking systems, some of which including their banking regulations, customer base and the chosen style of banking. All the factors presented have influenced the results of the banking sectors in both countries. Both systems have pros and cons, however the argument presented will reflect and support the benefits and success of the Canadian banking system and its ability to support the Canadian economy throughout the country’s history.

Beginning in 2007 and reaching critical mass in 2008, repercussions of economic downturn were being felt by nations across the globe. In North America, the collapse of the United States housing and mortgage market along with the wreckless actions of financial institutions and Wall Street can be identified as some of the main triggers in the downturn. Other nations were feeling declines as well, and the eventual decline in some European Union countries further contributed to this worldwide situation. This economic downward spiral quickly made its way into Canada, and was a huge issue of concern during the 2008 federal election. Out of this federal election walked a minority elected

The real cause of the crisis was not in the housing market but in the misguided monetary policy of the Federal Reserve. While the economy started to downsize in 2008, the Federal Reserve concentrated on solving the housing crisis yet it was just a distraction from the entire thing. By its self, it might have caused a small downfall. As the Federal agency released the financial institutions at a risk from a number of bad mortgages, it disregarded the main cause of a serious crisis (FEDERAL RESERVE BANK of NEW YORK, 2017) A decrease in the Gross Domestic Product (GDP) which entails the total value of all commodities and services produced in the United States, was not adjusted for inflation. Such a decline began the unplanned crisis in mid-2008, and once it happened, the damage had already

In 2008, a financial crisis that originated in the United States led to the “Great Recession”, the worst economic disaster since the Great Depression. While the well-regulated Canadian banks did not collapse as they did in the United States, Canada was still impacted severely. The Canadian economy should be examined in the context of the Great Recession, which it is still recovering from.

In the recent few decades, Canada has shown significant progress in the overall framework and currently ranks tenth in the world regarding nominal GDP. The real estate industry is the most dominant sector, the country also is one of the largest exporters of natural gas and petroleum on the one hand

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.

In Canada, central bank is the Bank of Canada. This bank wasn’t as prominent part of the system in the olden days. Before the Great Depression of the 1930’s, there wasn’t any importance of such banks in Canada. Earlier the nation worked on the Canada’s branch bank network which was sufficient for the nation 's needs for almost a century. Central Bank of Canada (BOC) was found in 1934, but was initially opened in March 1935 at Wellington Street in Ottawa. In short time, one of the bank’s policies (Bank of Canada Act) were modified to nationalize the organization. BOC converted into a Crown corporation in 1938, becoming a part of federal government. There were many additional departments that were established, i.e.

1. At the start of the 21st century, RBC was Canada’s leading bank and largest bank in terms of assets and market capitalization. It was a full-service bank with five main lines of business: personal and commercial banking, insurance, wealth management, corporate / investment banking, and transaction processing. The commercial bank of RBC (Royal Bank) accounted for nearly 50% of the company’s net income and had an extensive delivery network with branches, Automated Banking Machines (ABM’s), point of sale terminals, mobile sales staff, and 1.4 million online banking customers and 2 million phone customers. The bank also had an extremely strong international network.

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

As a result, the major Canadian banks provided services within their marketplace from insurance to retail brokerage.

Financial regulations are used to influence financial systems through times of financial instability. Regulations are not perfect, and does not guarantee a stress-free market, but it is necessary to prevent times of unsustainable economic growth, and financial crisis. With that being said, financial regulation has two goals: to ensure safety and soundness of the financial system, and to foster the growth and development of financial markets. If these goals are reached a thriving economy with great opportunities for investors, government budget surplus, and job creation. As a country, Canada has avoided many economic problems that haunt other countries like Greece, and the USA.