This article has been translated from English to Gen Z Slang.

Yo, so the Bank of Canada aka BoC is like Canada’s big money boss 💵 and it's chillin' in Ottawa, which is the capital city vibes 🌆.

Their main vibe is “to boost Canada’s economic and financial glow up,” like it’s written in their official rulebook, the Bank of Canada Act. 📜

Canada’s OG money squad started flexin’ in 1934 and opened for business in March 1935. By 1938, they were part of the federal fam as a Crown corporation. 💼

Bank of Canada (BOC)The Bank of Canada Act got a few upgrades over time, but the OG mission statement is untouched. 🔖

Still out here doing its thing “to keep the cash flow and credit poppin' for the nation’s econ flex.”

Canada’s money HQ got four main missions:

  1. Monetary policy: They be keeping an eye on the money vibe, making sure inflation is chill and on a low key with their policy tools 🎯.
  2. Financial system: They’re all about that safe, lit, and efficient money system, both in Canada and globetrotter style 🌎, backing it up with market moves.
  3. Currency: They design, drop, and spread Canada’s dope banknotes 💸.
  4. Funds management: They basically manage the bag for Canada, handling public debt and stashing foreign exchange reserves.

But like, real talk, they mostly focus on keeping inflation in check, aiming for a vibe between 1% and 3%. 📉

Their power move to make this happen? Setting that all-important interest rate for when y’all need to borrow cash.

With all that U.S. trade shenanigans, Canada’s interest rates sometimes gotta play follow-the-leader with what’s happening stateside 🇺🇸.

The BoC is the only one handing out those banknotes in the True North 🇨🇦.

Coins though? Nah fam, that’s the Royal Canadian Mint’s gig 🤷‍♀️.

Canada has gone full modern and doesn't make banks stack up reserves with the BoC anymore.

Nah, banks gotta hold liquid assets like treasury bills to cover 30-day withdrawals, and their leverage is all about keeping that loss-absorbing capital solid, mainly Tier 1 (equity style) capital. 💪

Even though the bank’s under the government, it’s owned by the real MVPs: the people. 🙌

The BoC started off as a private gang in 1934 but got scooped up by the government and became a Crown corporation in no time.

Unlike the rest of the squad who play by government rules, the bank’s top peeps are lowkey appointed by the bank itself. 🧐

Who’s in Charge Here?

The Governing Squad

The BoC rides under the Governing Council’s draft, the big shots running policy central who handle:

  • the monetary vibe check ✅
  • making sure the financial system is safe and performing ✨

The Council squad includes the Governor, Senior Deputy Governor, and four Deputy Governors.

Their main toolkit for their monetary moves is setting the target overnight rate, and they usually drop this news eight times a year 📅.

Decisions here are all about reaching a consensus, none of that one-person-one-vote business like other banks.

The Executive Council

The Executive Crew is the Governing Council plus the Chief Operating Officer, steering the bank’s strategy ship ⛵.

The Big Boss

As the bank’s CEO, the Governor’s got the keys to the whole place. His gig is:

  • leading from the Board of Directors chair 🪑
  • taking charge of the Governing Council, and
  • running the monetary policy show to hit an inflation target agreed with the government 🎯.

The Governor and Senior Deputy are selected by the directors and the federal crew for a solid seven-year term, giving them time to ensure monetary policies are on point 🔍.

The Second-in-Command

The Senior Deputy's the bank’s deputy boss. She:

  • handles the strategic life planning 🎯 of the bank;
  • shares the load on monetary policy alongside the Governing Council;
  • and sits on the Board of Directors.

The Board Bunch

The Board of Directors is picked by the Finance Minister for three-year runs, with a nod from the Governor in Council.

They’ve got the Governor, Senior Deputy, 12 external directors, and a Finance Deputy Minister in the crew—who’s just chilling without a vote. 🙅‍♂️

Their duties include:

  • giving the general oversight on the bank's bunga and admin,
  • checking out general policies (not about monetary stuff), approving goals, plans, and budget approving 👀,
  • schooling the bank on money vibes across different regions,
  • and picking the governor and senior deputy. But no meddling in monetary policy, that’s a solo gig.