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 bank of, bank, canada, balance and/or sheet:
“When she could hide him no longer she got a papyrus basket for him, and plastered it with bitumen and pitch; she put the child in it and placed it among the reeds on the bank of the river.”
—Bible: Hebrew, Exodus 2:3.
“... an adamantine island chained to the shifting bank of the Channel.”
—Christina Stead (1902–1983)
“Though the words Canada East on the map stretch over many rivers and lakes and unexplored wildernesses, the actual Canada, which might be the colored portion of the map, is but a little clearing on the banks of the river, which one of those syllables would more than cover.”
—Henry David Thoreau (1817–1862)
“Daily life is governed by an economic system in which the production and consumption of insults tends to balance out.”
—Raoul Vaneigem (b. 1934)
“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)