Bank of Canada's Balance Sheet
The Bank has a zero bookvalue policy on its balance sheet—matching total assets to total liabilities—and transfers any equity above this amount as a dividend to the Government of Canada. The Bank of Canada owns 61 billion in Government of Canada debt and had a net income in 2011 of 1.25 billion. The Bank of Canada matches its liabilities of 61 billion in currency outstanding—to its assets owning 61 billion in Government of Canada debt. The bank notes in circulation have changed from 55.4 billion in two years to 61 billion. In 2008, the Bank of Canada had its highest annual report total asset, total liabilities number at 78 billion. The Bank of Canada lists cash on its 2012 second quarter balance sheet at $8.3 million in currency and foreign deposits. The Bank of Canada's books are audited by external auditors who are appointed by Cabinet on the recommendation of the Minister of Finance, and not by the Auditor General of Canada.
It is important to note, the balance sheet policy employed by the Bank of Canada is that this base money is not permanent, as for each created dollar of credit there is a matching liability created on the Bank of Canada's balance sheet—and is a zero sum once the debt is paid off. True money is only issued as reserve currency for commercial bank lending by the government. Also called high-powered money, this money can then be multiplied by a factor outside of government control through bank lending.
Read more about this topic: Bank Of Canada
Famous quotes containing the words balance sheet, bank, canada, balance and/or sheet:
“If when a businessman speaks of minority employment, or air pollution, or poverty, he speaks in the language of a certified public accountant analyzing a corporate balance sheet, who is to know that he understands the human problems behind the statistical ones? If the businessman would stop talking like a computer printout or a page from the corporate annual report, other people would stop thinking he had a cash register for a heart. It is as simple as that—but that isn’t simple.”
—Louis B. Lundborg (1906–1981)
“on a May morwening upon Malverne hilles
Me befel a ferly, of fairye me thoughte;
I was wery ofwandred and wente me to reste
Under a brod bank by a bournes side;
And as I lay and lenede and lookede on the watres,
I slomerede into a sleeping, it swyede so merye.”
—William Langland (1330–1400)
“I fear that I have not got much to say about Canada, not having seen much; what I got by going to Canada was a cold.”
—Henry David Thoreau (1817–1862)
“Unfortunately, the balance of nature decrees that a super-abundance of dreams is paid for by a growing potential for nightmares.”
—Peter Ustinov (b. 1921)
“After the planet becomes theirs, many millions of years will have to pass before a beetle particularly loved by God, at the end of its calculations will find written on a sheet of paper in letters of fire that energy is equal to the mass multiplied by the square of the velocity of light. The new kings of the world will live tranquilly for a long time, confining themselves to devouring each other and being parasites among each other on a cottage industry scale.”
—Primo Levi (1919–1987)