Banking Glossaries-B

Balance

The amount of money in your account.

Balance sheet

Shows the assets and liabilities (legal responsibility of your company) at any particular time. The assets on a balance sheet will always equal the liabilities plus the owner's equity.

Bank Act

Federal legislation governing how banks operate in Canada. The Bank Act was first passed in 1871 and is updated periodically -- usually every five years. The last major revision was completed in 2001.

Bank Card

A card issued by a financial institution that identifies the holder as a customer of the institution and allows access to accounts through an ABM; also, a credit or debit card issued by a financial institution.

Bank for International Settlements (BIS)

The BIS is an international body that promotes the co-operation of central banks, fulfils the function of a central banks' bank and acts as a clearing and settlement agent. It acts as a forum for discussion of international monetary policy and conducts research into international banking developments.

Bank of Canada

The country's central bank, which formulates and implements monetary policy. As the federal government's fiscal agent, it also helps carry out the government's borrowing program, provides banking services for the government and other clients and ensures that the need for bank notes across the country is met.

Bank Rate

The interest rate paid by major financial institutions if they borrow from the Bank of Canada. The Bank Rate influences the rates of interest major financial institutions charge and pay their customers.

Blank cheque

A cheque that does not have a dollar amount written on it.

Bonds

Offered by governments and corporations, bonds are investments in which you lend a sum of money to the issuer for a set amount of time at a fixed rate of interest.

Bull and Bear Markets

When stock prices are increasing and it's a healthy market, this is known as a bull market. When stock prices are decreasing, it's a bear market.

Business Cycle

The ups and downs of the economy that follow a cyclical pattern over the course of time.

Business Development Bank of Canada (BDC)

A crown corporation that helps establish and develop Canadian businesses, especially small and medium-sized ones. BDC provides financial and management services similar to those found in the banking industry.

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