How we’re separate from the political process
The Bank of Canada is a special type of Crown corporation, owned by the federal government, but with considerable independence to carry out its responsibilities.
- The Governor and Senior Deputy Governor are appointed by the Bank's Board of Directors (with the approval of Cabinet), not by the federal government.
- The Deputy Minister of Finance sits on the Board of Directors but has no vote.
- We submit our expenditures to our Board of Directors, whereas federal government departments submit theirs to the Treasury Board.
- Our employees are regulated by the Bank itself, not by federal public service agencies.
- Our books are audited by external auditors appointed by Cabinet on the recommendation of the Minister of Finance, not by the Auditor General of Canada.
An independent monetary institution separates the power to spend money from the power to create money.
As a central bank separate from the political process, we are able to adopt the medium- and long-term perspectives essential to conducting effective monetary policy.
Governance documents
We are committed to publishing information about how we work.
- The Bank of Canada Act requires us to submit our audited financial statements each year, accompanied by a report from the Governor to the Minister of Finance.
- The Payment Clearing and Settlement Act gives us responsibility for the oversight of payments and other clearing and settlement systems in Canada, for the purpose of controlling systemic risk.
- Our Annual Report includes audited financial statements, and we also publish a Quarterly Financial Report.
