An Introduction to Canada’s Banking System
This video offers basic information about the Canadian banking system, encouraging people to use the large national banks regulated by legislation and sure to handle money in a safe manner. The video also explains the use of credit cards and cash machines, and warns against poor debt management and the use of less reputable money lenders.
Transcript
Narrator: Unlike many other countries, Canada’s main banks offer their services nationwide with few exceptions. Some regional financial institutions also exist, such as credit unions, or in Quebec, the caisses populaires.
Canada has very secure financial institutions and strong legislation to ensure the security of Canadians’ deposits in these institutions. As long as you deal with the major banking institutions, your money will be secure and handled in a safe way.
Canada offers a competitive market system so other smaller financial institutions exist as well. You need to exercise caution when using payday loan or cheque-cashing businesses, as these can charge excessive rates of interest or very high fees for their services.
Most business in Canada is done by credit card or cheque; very little business is conducted in cash. Some credit card companies may be willing to give you more credit than you can handle, so be careful not to borrow more than you are able to repay. Missing even one payment can have a serious negative effect on your ability to borrow money in the future. It’s important that you contact your financial institution if you expect to be late with a payment.
Cash machines or instant tellers are common throughout Canada and North America. Be very careful about giving other people your banking cards, and never give your passwords or personal information numbers, also called PINs, to others.
