The Bank of Canada, established under the Bank of Canada Act, is a Crown corporation wholly owned by the Minister of Finance on behalf of the Government of Canada and is exempt from income taxes. Unlike commercial banks, it does not provide banking services to the public. Its primary mandate is to promote the economic and financial welfare of Canada. The Bank’s operations align with this public policy mandate rather than pursuing profit generation.

The Bank performs five core functions essential to Canada’s economy. First, it conducts monetary policy aimed at preserving the value of money by maintaining low, stable, and predictable inflation. Second, it promotes safe, sound, and efficient financial systems both domestically and internationally and engages in financial market transactions to support these goals. Third, the Bank provides funds management services, acting as the fiscal agent for the Government of Canada by managing treasury functions and advising on public debt and foreign exchange reserves. Fourth, since November 1, 2024, the Bank has taken on the supervision of payment service providers to improve the safety, reliability, and user protection of retail payment systems. Fifth, the Bank has the exclusive right to issue Canadian bank notes, overseeing their design, issuance, distribution, and security to ensure quality notes are widely accepted and protected against counterfeiting.

Oversight of financial reporting and internal controls rests with the Bank’s Board of Directors, which ensures management meets its responsibilities. The Board fulfills this role mainly through its Audit and Finance Committee. This Committee is composed of members who are neither officers nor employees of the Bank and who possess financial literacy, qualifying them to review the annual financial statements and recommend their approval. The Committee meets with management, the Chief Internal Auditor, and the Bank’s independent auditors, who are appointed by the Governor-in-Council. The Committee oversees the independence and work of the independent auditors and monitors all services they provide. It also reviews significant accounting policies, principles, and changes that materially affect the financial statements, as well as critical management judgments and estimates underlying the reported financial information.

The Bank’s 2024 financial statements have been audited by the independent auditors Ernst & Young LLP and PricewaterhouseCoopers LLP. Their audit report affirms that the statements fairly present the Bank’s financial position as of December 31, 2024, and its financial performance and cash flows for the year, in all material respects, in accordance with IFRS. The auditors conducted their examination in line with Canadian generally accepted auditing standards, maintaining independence and fulfilling all relevant ethical requirements.

Overall, the Bank’s governance, financial reporting, audit processes, and core functions work together to ensure that it fulfills its mandate effectively while maintaining transparency, accountability, and financial integrity in its operations.

Canada (Supplement 1 Vol 159 No 25) June 21, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.