Finance

The emergence of Government Control over Banking and Currency in Canada brought about profound changes in banking industry and overall way of monetary exchange. The government brought about the introduction of paper money although at the beginning this was welcomed with pessimism. A few years later saw the emergence of few banks which came to serve the market from seasonal industries. Through an act of parliament in 1934, the Bank of Canada was formed a year later as a public institution and in 1938 it was transformed into public ownership.

The emergence and use of coins became widespread among many colonies in North America as early as 1960s. However, in early 1800s, there occurred a phenomenon shortage of this currency. Most of these banks used branch networks. During this period the money market especially the banking sector was under unscrupulous players who formed cartels to block entry of new players. Later on the governments say the need to regulate credit and currency by forming a central bank. In addition, the consequences of the great depression in 1930s did cause a lot of criticism on how the banks of the day were run. In addition, the bank controls and cushions the external value of the state financial unit. The bank took the responsibility of controlling the monetary flows to control inflation. The bank has continued t exercise its mandate in regulating credit and money for the good of economy of Canada.  The bank also applies the monetary measures to alleviate any changes in the broader point of production, business and employment.

In summary, the Bank of Canada has overseen the changeover of all the currency operations in Canada ranging from production of various forms of currency and their functions to setting policies that regulate its circulation.