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

CHA PTER 2

THE DOMESTIC AND

INTERNATIONAL

FR AMEWOR K OF

CANADIAN BANKING LAW

A. INT RODUC TION

Since 1867, Parliament has exerci sed its jurisdiction over banking pur-

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

successive Bank Acts dati 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 cha rter of, and applies to, every

bank, domestic or foreign, operating in Ca nada, 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 enti re federally regulated f‌inanci al institution

sector operates, together with a web of provincial legi slation relating

to insurance companies, t rust 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.