1LectureFinancialSystem1

1LectureFinancialSystem1 - Financial System Money Market...

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1 Financial System Money Market Capital Market Financial Institutions
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2 1.Overview of the Financial System Financial Mkts Suppliers of funds Demanders of funds Indirect Finance Financial Ins.
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3 Examples Loan from a bank Buy a share from your uncle Buy life insurance
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4 2.Classification of Financial Ins A. Depository Institutions : raise money b y taking in deposits
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5
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6 Classification of Banks Schedule II : Foreign bank subsidiaries - Take retail deposits and service mostly ethnic groups - Deposits are insured by CDIC Schedule I : Big 6 (Bank of MTL, Royal Bank, CIBC, TD, National Bank, Scotia) and others - domestic banks offer full range of financial services - Deposits are insured by CDIC Schedule III : Foreign Branches… Don’t accept deposits of less than $150,000
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7 B. Contractual Savings : raise money by taking regular savings under specific contract Private PF
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8
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9 C.Other Financial Institutions
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10 Mutual Funds
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11 Public Financial Institutions : EDC, CMHC, CDIC…
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12 Banking Today= Full Service FI
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13 Debt obligations with maturity ≤ 1 year Principal is generally secure Very liquid Issued in high denomination Dealer’s market 3. Money Market buy sell
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14 A.Treasury Bills
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This note was uploaded on 02/28/2012 for the course FINE 442 taught by Professor Larbihammami during the Spring '12 term at McGill.

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1LectureFinancialSystem1 - Financial System Money Market...

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