Other banking institutions However, since the mid-1980s. the most striking manifestation of undermining the existing decades-sharing system functions between the "four pillars" of the Canadian Finance and credit expansion becomes violent in the country for a completely new type of financial institution in Canada - broadly diversified investment banking firm, or, in the terminology of Canadian experts, "merchant bank. " The rapid development of this type of financial institutions is largely due to the fact that "commercial bank" is almost not covered by existing laws regulating the sphere of finance in Canada, and especially under the laws restricting the rights of investors to buy up large (over 10%) interest in the voting shares of financial companies. Thus, the penetration of the credit and financial markets by means of institutions of this kind is most beneficial largest groups of monopoly capital, have the appropriate means to fully dispose of large organizations' financial holdings "of such companies. They are based on the aggregate financial and economic potential of all credit and financial institutions under their control, and use an already established network of customers, their market knowledge, management experience, etc. The first and largest investment banking firm in Canada Corporation was "Heath international corp.
" - Part of a giant family possessions of Edward and Peter Bronfman. Another example of a "merchant bank" can serve as a "Central Capital Management Inc..", Separated from the holding company "Central Capital Corp.
". His greatest possession is one of Canada's largest trust companies "Central Trust". The entire group of financial institutions control the two major Canadian businessman R. Cohen and David Allen.
Own "merchant bank" - "Lancaster Inc. fayneshnl." Organized financial conglomerate "Krauneks inc." (Central element of his - a large insurance company "Crown Life Insurance").
In 1985, the country had only one such institution, in 1988 there were already about a dozen, and this number is constantly increasing. "Commercial banks" spun off from virtually all of the largest diversified companies in the field of finance.
The formation of financial conglomerates differ in their specialization of financial companies has become an important feature of the centralization of capital in the credit and financial area of Canada. Savings banks in Canada have not received as much widespread as in the United States. They are mostly developed in Quebec and controlled "family" groups of French-speaking capitalists. Cash received their population is invested in government bonds.
The most important role in the development of the banking executives of Canadian finance capital has played the banking legislation. Special studies carried out in Canada, have convincingly shown that the banking system of the country has always firmly defended as competition from other financial sectors and financial institutions that are under foreign control. As a result of this protection, banks were able to extract high monopoly profits. It is widely used by the financial capital of Canada to take advantage of and apparatus of administrative regulation (regu tirovaniya) of various industries and sectors of the country.
This primarily relates to the regulation of the securities (shares and bonds) corporations. Thus, a number of special acts regulating the securities market (this area is under the jurisdiction of the provinces), to complement the action of the tax laws in the direction of further concentration and centralization of capital in the country.
In particular, the corporation, registered in the province of Ontario, subject to the rule, according to which the purchase of "outside shareholders" 20% or more of the voting shares of a company at a price above the market average of 15% (this is typical in the transaction between the buyer and the largest a major seller in the face of the leading corporations in Canada), it must offer the same "best" price to all other authorities smart dealers of small packages. Thus, the law often makes the corporation was planning a major investment in shares, fully absorb this or that company.
Among other laws governing the securities market, notably the little-known position on the structure of investments of pension funds in Canada. Throughout the postwar period, Canadian pension funds sav ings had at least 90% of all funds invest in stocks and bonds only Canadian firms. Being provided as a means of stimulating economic development in Canada, "this measure has played an invaluable role in the process of concentration of economic power in the country. An important feature of the Canadian economy are its very close ties to the U. S. economy: about 20% of the products produced in Canada are exported to the United States, and the financial markets of the two countries are highly integrated.
The second feature that distinguishes Canada from most other industrialized countries is the high specific weight of the mining industry in its gross domestic product. Since the raw material is a significant proportion of exports, the terms of trade for Canada always improve in periods of rising global commodity prices and decreases in periods of falling.