Chapter 7 - Money and the Canadian Banking System

"Profits of Canadian Western Bank rise 37 per cent", CBC News - June 1, 2006

The Canadian Western Bank, based in Edmonton, has been making profit for 72 consecutive fiscal quarters in the past 18 years. This year, in their second quarter, the Canadian Western Bank's profits have risen by 37%, where their net income in this quarter has greatly exceeded their already-strong first quarter's earnings. Their profits rose to $16.7 million, equivalent to $0.52/share, while revenue increase by 20% to $53 million. They continue to have very high levels of business and credit quality within all four of the western provinces that they service to. Insurance profits, banking and trust operations are also continuing to rise. The Canadian Western Bank operates through Canadian Western Trust Co., Valiant Trust Co., and Canadian Direct Insurance Inc. They are very happy to "offer western Canadian customers a high-service, local alternative to larger national financial institutions".

Relation to Chapter 7 - financial institutions

The Canadian Western Bank is a Canadian chartered bank. Acknowledging the fact that the Canadian Western Bank has been making so much profit in the past 18 years, this indicates that they have a reasonable difference between the rate of interest paid to depositors and the rate of interest received on loans, as this difference represents the profits for a chartered bank. However, not all of their profits are based on this, because they also operate through other types of financial institutions, such as trust companies. Although demand and savings deposits are available for trust companies, their major sources of funds are from estates, trusts, and agency accounts. There are benefits to having a variety of chartered banks within Canada. With an increased numbers of banks, there will be competition to keep optimum interest rates for businesses and consumers. People will also be able to choose which financial institution will be most favourable to them.