Financial System

About the financial system

Canada's financial system consists of financial institutions, such as banks and credit unions; the financial markets; and payments systems. It is the channel through which savings become investments, and through which money and financial claims are transferred and settled. A stable financial system is therefore essential to the health of Canada's economy.

The Bank of Canada works with other agencies and market participants to promote the safe and efficient operation of the system's key elements. The Bank:

• provides liquidity to the system
• gives policy advice to the federal government on the design and development of the financial system
• oversees major clearing and settlement systems
• provides banking services to these systems and their participants
• collaborates with other domestic and international bodies involved in financial-stability issues.

Payments and other clearing and settlement systems

In-depth information for both general and specialized audiences.

Lender of last resort

One of the functions of the Bank of Canada is to act as a "lender of last resort."