Bank of Canada (BOC)

The Bank of Canada (BOC) is Canada's central bank. The Bank was created by an Act of Parliament (the Bank of Canada Act) on July 3, 1934 as a privately owned corporation and became a Crown corporation belonging to the Government of Canada in 1938. Since that time, the Minister of Finance has held the entire share capital issued by the Bank. Ultimately, the Bank is owned by the people of Canada.

The Bank is not a government department and conducts its activities with considerable independence. Its headquarters are in Ottawa.

As the nation's central bank, the Bank of Canada has four main areas of responsibility:


Monetary Policy

The Bank contributes to solid economic performance and raising living standards for Canadians by keeping inflation low, stable and predictable. Since 1991, the Bank’s monetary policy actions toward this goal have been guided by a clearly defined inflation target.

Currency

The Bank designs, produces and distributes Canada’s bank notes and replaces worn notes. It deters counterfeiting through leading-edge bank note design, public education and collaboration with law-enforcement agencies.

Financial System

The Bank promotes a stable and efficient financial system in Canada and internationally. To this end, the Bank oversees Canada’s key payment, clearing and settlement systems; acts as lender of last resort; assesses risks to financial stability; and contributes to the development of financial system policies.

Funds Management

The Bank provides effective and efficient fund-management services for the Government of Canada, as well as on its own behalf and for other clients. For the government, the Bank provides treasury-management services and administers and advises on the public debt and foreign exchange reserves. In addition, the Bank provides banking services to critical payment, clearing and settlement systems.