The Domestic and International Framework of Canadian Banking Law

• Author: M.H. Ogilvie
• Profession: Chancellor's Professor and Professor of Law, Carleton University
• Pages: 24-37

24

CHAPTER 2

THE DOMESTIC AND

INTERNATIONAL

FRAMEWORK OF

CANADIAN BANKING LAW

A. INTRODUCTION

Since 1867, Parliament has exercised its jurisdiction over banking pur-

suant to section 91(15) of the Constitution Act, 1867, primarily through

successive Bank Actsdati ng from the f‌irst temporary Act passed duri ng

the session of 1867–68 to the current Act, which ha s been in force since

1991, with numerous subsequent amendments.1 The importance of the

Bank Act cannot be overstated. It is the charter of, and applies to, every

bank, domestic or foreign, operating in Canada, and it ref‌lects current

government policy about the f‌inancial institutions sector generally and

about the economy. The present Act is the outcome of three decades

of intensive public policy debate in Canada about the f‌inancial institu-

tions sector and is one of four major pieces of legislation introduced in

1991,2 under which the entire federally regulated f‌inancial institution

sector operates, together with a web of provincial legislation relating

to insurance companies, trust and loan companies, stock brokerages,

1 The successive Bank Act s are as follows: S.C. 1867–8, c. 11; S.C. 1869, c. 49; S.C.

1870, c. 11; S.C. 1871, c. 5; R.S.C. 1886, c. 120; S.C. 1890, c. 31; R.S.C. 1906,

c. 29; S.C. 1913, c. 9; S.C. 1923, c. 32; R.S.C. 1927, c. 12; S.C. 1934, c. 24; S.C.

1944–45, c. 30; R. S.C.1952, c. 12; S.C. 1953–54, c. 48; S.C. 1966–67, c. 87; S.C.

1980–81–82 –83, c. 40; S.C. 1991, c. 46 as am.

2 Bank Act, S.C. 1991, c. 46 as am.; Trust and Loan Compani es Act, S.C. 1991, c. 45

as am.; Insurance Companie s Act, S.C. 1991, c. 47 as am.; and Cooperative Credit

Associations Act, S.C. 1991, c. 48 as am.