Manitoba's money market
Rae, Lorne Wilfred
The Canadian money market was formally established by the Bank of Canada in the early 1950's in an effort to improve the effectiveness of the Bank's ability to direct and influence the state of the Canadian economy. By a series of moves, the Bank of Canada broadened the market for government of Canada treasury bills to include not only the banking community but also investment dealers, industrial corporations and individuals... Section I outlines in some detail the steps involved in the establishment of a money market in Canada... In Section II the roles of some of the more important participants in the Canadian money market are outlined... The commercial banks are playing an increasingly important role in the activities of the money market as a result of revisions to the Bank Act in 1967. Sales finance companies and others such as non-financial corporations now are major participants in the money market both as borrowers and as lenders... Section III deals specifically with the money market as it is found in Manitoba... However, Manitoba, in the past has made fairly extensive use of the facilities of the Canadian money market and it has contributed a number of innovations to the market - namely grain paper and provincial treasury bills. These activities and innovations have shown that Manitoba has sophisticated financial organizations and personnel with a high degree of expertise in a relatively little known aspect of finance, and these attributes have contributed towards the establishment in Canada of a more national financial system.