This letter is written as a response to recent letters to the editor from Roberta Histed.
To The Editor,
The Bank of Canada has as its principal role to ‘promote the economic and financial welfare of Canada’. Its four main areas of responsibility are:
Monetary Policy:       influences the supply of money to keep inflation low and stable (current target 2 %)
Financial System:      promotes safe and efficient financial system
Currency:                   the Bank designs, issues and distributes Canada’s Bank Notes
Funds Management: the Bank is the fiscal agent for the Government of Canada, managing its public debt program and the foreign exchange reserves. There are three ways to issue debt:  Treasury Bills, Canada Bonds and Canada Saving Bonds. the latter owned by individuals.
It is important to note  inflation affects everyone. It can keep you from retiring in comfort and even affect your ability to meet  day-to-day living expenses. Too much money chasing too few goods and services will cause prices to rise. High inflation rates have caused unrest in many countries and Venezuela is a current example where the inflation rate is over 300 % and citizens are unable to purchase food even if available. It is interesting to note, because of the internet, more and more purchases are not cash but through the Web as well as credit cards. This adds to the complex task of controlling money supply.
The fact remains, Monetary policy has kept prices in check to the benefit of everyone.
The Bank of Canada is composed of a Governor, Senior Deputy Governor and four Deputy Governors.  As well, the Board of Governors has twelve outside directors, seven women and five men. The seven women are:  three from Toronto, one from Montreal, one from Winnipeg, one from Vancouver and one from St. Johns, Newfoundland. The five men are: one from Sackville, one from Richmond, B.C., one from Canmore Alberta, one from Wolfville, N.S.,and one from Regina. The Deputy Minister of Finance sits on the Board but has no vote. You can see how well Canada is represented.
No one on the Board is listed on Forbes’ wealthiest Canadians. Only four Canadians are in the Billionaire Club.
Canada’s banking system is the envy of the world. We have branch banking instead of unit banking practiced elsewhere. Unit banking means a local bank with no branches can only lend up to the amount of its deposits and capital; branch banking in Canada means that excess deposits in one area, say, Nova Scotia can be used to fund loans in other areas of Canada such as Alberta or Saskatchewan where there may exist a deposit shortage and funds are needed for capital projects as well as new housing. Billions of dollars rest  in ATM’s across Canada, not earning interest, but allowing Canadians 24 –7 access to their funds. (Some of us remember banks open from 10 – 3 p.m.  with an additional 4:30 to 6 p.m time slot on Friday.)
It is also of note to recognize that Canadian banks have a high rating among credit agencies. This translates into quality investments for retirement funds which many of us rely on. In addition, Canadian banks are highly regulated and we did not needlessly suffer through the fiasco that caused financial hardship in the United States in 2015.
Since the inception of the Bank of Canada in 1934, originally under the guidance of James Coyne, no Canadian bank has gone bankrupt.
The Current Governor is Stephen Poloz; the Senior Deputy Governor is Carolyn A. Wilkins
Dale Garvin,
L’Orignal