Debating the topic of the size of banks is much like debating the topic of the size of the government; should a one industry play such an imperative role in the economy? Although many argue that it is unrealistic to expect any industry of this size to not take advantage of their role, and—like the government, the concentration of power has a history of negative effect on the economy, it must be remembered that banking is a competitive industry that differs from the government in a multitude of ways. The endless speculations and conspiracy theories that banks are evil conglomerates can easily be dismissed by the reality of the function of banks. Though the profits of banks and thus the salaries of the individuals who run banks appear to overzealous, their significant contribution to the economy acts as validation. Furthermore, the banks’ predominance in the Canadian economy is not necessarily negative as it offers the expansion of the economy as a whole; services promote economic activity outside the norm, and so the establishment of small businesses is promoted. Most predominantly, banks regulate the economy in a competitive way that does not hinder activity, unlike the government’s attempts to intervene within the economy; when this regulation is originating from a competitive market as opposed to an invulnerable one (the government), the whole economy benefits. Therefore, banking and its involvement in the economy is beneficial.
The profits that banks receive as well as the higher than average salaries they administer are generally considered cause for concern among Canadians. However, the amount the banking industry contributes to the economy is regularly overlooked, thus making a balanced equation appear disproportionate. CE...
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The global economy has been recovering from the financial crisis which occurs in 2008, then has a weak growth for most developed countries over 2012 and 2013. But economic activity in Canada has expanded at a faster pace than most other major advanced countries in 2012; however, economic performance in Canada has been unsteady throughout 2013 (The Economic review, 2013). After the last quarter in 2010 GDP growth rate grows rapidly, the GDP grows slowly but steadily in 2012 which remains at around 3 percent. Real GDP growth rate in Canada grows slowly in the first quarter of 2013, but increased by 5 percent in the second quarter ,then remains the same level until the first quarter of 2014 (Statistics Canada, 2014). In 2014, the Canadian government take a series economic action plan as a guide for the economy development such as improving investment conditions, ...
Over the past two quarters Canada has experienced a continuous decline in GDP. Many factors contribute to the recession and decreases in the financial stability of our country. Factors that either contribute or reveal that Canada is in a poor economic position are increasing unemployment rates, surging price levels, and rising interest rates. These opposing contributions force consumers to save their money instead of putting it back into the economy. This then diminishes the economy, forcing the recession onto our citizens. The novel, Dinner Party Economics by Eveline J. Adomait and Richard G. Maranta and various reputable sources further explain the topics regarding to this upcoming recession. Canada has been hit by a brick wall of negative
The global financial crisis affected the many advance economies, particularly the United States. Unemployment significantly increased, people were evicted from their homes, and the search for employment was a dead end. However, Canada was not affected with the same force as the United States: “Canada’s financial sector was less affected than most advanced economies and it had the highest bank soundness rating in the World Economic Forum surveys from 2007-2008 through 2012-2013.” Despite the relatively stable status of the Canadian economy, Canada was very much involved in the review and improvement of international financial regulations. Canada was in a position to make changes to financial regulations due to their perceived experience in the matter, as Canada escaped the crisis relatively unscathed. Canadian delegates were placed in charge of four core areas in the reformation of financial policy and, “in all these areas, Canada was able to successfully push for reforms that resonated with its experiences and interests in enhanced financial sector regulation and supervision.” This crisis, and the successful reformations that came out of it, further installed Canada as a leader in economics, firmly inaugurating them as the world’s best bankers.
Banks exist to provide people with financial security. Banks accounts allow for people to store money for saving and investing purposes. People give their money to banks in hopes that the bank will take care of their money. However, history has shown as that banks cannot be completely trusted. For example, in the days of the Great Depression. During the years of President Roosevelt’s tenure, he attempted to make it easier for people to trust banks. Still, many years later, banks cannot be completely trusted. In 2008, the financial crisis was the worst since the Great Depression, and it stemmed primarily from banks’ abuse of people. Once again, there has been legislation to keep banks from abusing
Linda McQuaig's book, The Cult of Impotence: Selling the Myth of Powerlessness in the Global Economy, is a refreshing new approach to viewing the current state of global economy and Canada’s place in it. In recent years, such mysterious terms as fiscal deficits, natural rate of unemployment, stock market fluctuations, interest rate cuts and zero inflation and so on, have received an exceptional level of public consideration. Nevertheless, in spite of the now generally acceptable importance of the terms, their meaning an the effects of the domestic economic policies is left for the “professional” economists to analyze and present the public, as well as nation’s governing bodies with a list of remedies. Their guiding logic and principles are rarely questioned and more rarely fully understood. In such an environment, McQuaig has earned a wide audience for her writings by stripping away the aura of complexity from controversial economic issues and making them accessible and relevant to a general audience. Challenging the opinions of the “experts”, she is trying to bring back the debatable economic policies of the “global age” to democratic accountability.
In today’s America, bankers are often seen as heartless, money hungry pigs, and media outlets portraying bankers putting hardworking people on the streets. Regulation like FDIC and Dodd- Frank increases financial security and helps restore our repetition. Cases like ERON and Long-Term Capital Management, where people lost their entire savings, would not happened. Regulation is not the enemy. Instead of having lobbying groups to deregulate, accountable banks should embrace such regulation designed not only to improve consumer confidence, but also to preserve the integrity of our overall financial
Over the past few years, Canada's economy has done comparatively well and has demonstrated some resilience to the fluctuating global economy. However, Canada remains to be relatively less competitive with respect to other developed countries. In this paper I will attempt to take a closer look at Canada's position in the global economy today and examine the relevant issues.
"Top 1000:Exclusive Rankings of Canada's Most Profitable Companies," The Globe and Mail. June 27,2013. 11/30/13
The early decades of the nineteenth century saw the establishment of banks in the Caribbean largely as a convenience for the local governments. Throughout much of the nineteenth century, most Caribbean banks operated as an oligopoly with limited government influence – this directly translated into higher profits. However, over time, the banking environment could best be described as complex and dynamic. Competition increased, resulting into greater need for improved customer service, product innovation and cost reduction strategies. In order to achieve this, the banking sector was undergoing major structural reforms characterized by mergers and acquisitions. On July 23, 2001 Barclays and CIBC announced that they were in advanced discussions which were intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean.
Krahn, Lowe, Hughes (2008) Work, Industry, & Canadian Society. (5th ed.) Toronto, ON: Nelson Education Ltd.
Economics is the study of how goods and services are produced, distributed and sold to consumers. It is a social science that affects every human living on earth, however, many people are not aware of the different economic concepts and how they influence the community they live in. The Canadian economy is in a constant state of fluctuation that can be impacted by multiple factors. The different economic concepts allow us to properly evaluate purchasing decisions and why prices or policies are presented as they are. There are two main levels of economics that each impact the nation’s economy in their own way. Macroeconomics is the level of economics that deals with the large-scale factors that influence the nation, such as financial interest rates and government policies. In contrast, microeconomics is the level of economics that deals with small-scale factors that relate to individual or business decisions, relating to supply and demand, and how they influence the economy. Without reading the newspaper, many Canadians are unaware of these economic factors and do not realize the consequences each factor can have on the country. There are economic events occurring daily across Canada, which would allow citizens to properly understand how their decisions are affecting the community around
Economic prosperity has been a goal of countless Canadian governments throughout the 2000’s and while there have been moments where it seemed the economy would fail, it would always revive and prosper. According to economist, economic prosperity can be achieved through the economic goals. Each of the three journals that we have done this semester allow for insight within the workings that can be done in order to work towards these goals and ensure the economic prosperity of Canada. A few things that the journals showed that can be done within the Country to ensure economic accomplishment would be the economic development of cities beside Toronto and other big cities, Canada’s continued contribution to the development of jobs and the constant
Krahn, Lowe, Hughes (2008) Work, Industry, & Canadian Society. (5th ed.) Toronto, ON: Nelson Education Ltd.
Weller, C. E., & Hersh, A. S. (2002, April). Banking on multinationals: Increased competition from large foreign lenders threatens domestic banks (Issue Brief No. 178). Retrieved from Economic Policy Institute website: http://www.epi.org/publication/issuebriefs _ib178/
Bank profitability has always attracted the interest of academics, economists, and policymakers. With increasing regulation during the global financial crisis, however is gives an understanding of what drives bank profits is increasingly crucial. Literature that has examined bank profitability in many countries in the l...