THE ECONOMICS OF MONEY,BANKING, AND FINANCIAL MARKETS 68

36

PA R T I

TA B L E 2 - 5

Introduction

Relative Shares of Financial Institutions and Pension Plans
Regulated by OSFI (as of March 31, 2008)

Type of Intermediary

Number

Total assets
($ millions)

Percent (%)

Chartered Banks
Domestic
Foreign bank subsidiaries
Foreign bank branches

20
24
29

2 596 712
139 523

79 191

67.92
3.65
2.07

Trust and Loan Companies
Bank-owned
Other

31
39

243 163
23 292

6.36
0.61

8

21 152

0.55

Life Insurance Companies
Canadian-incorporated
Foreign branches

46

48

456 440
15 275

11.94
0.40

Fraternal Benefit Societies
Canadian-incorporated
Foreign branches

10
8

5 809
1 775

0.15
0.05

96
100

78 256
30 873

2.05
0.81

1 350

131 765

3.44

3 823 226

100.00

Cooperative Credit Associations

Property and Casualty Insurance Companies
Canadian-incorporated
Foreign branches
Pension Plans
Total

Source: Office of the Superintendent of Financial Institutions Canada (OSFI), 2007 2008 Annual Report.

that they can hold. Currently, with about $472 billion of assets, they are among the
largest of the contractual savings institutions.
These companies,
numbering 196, insure their policyholders against loss from theft, fire, and accidents. They are very much like life insurance companies, receiving funds through
premiums for their policies, but they have a greater possibility of loss of funds if
major disasters occur. For this reason, they use their funds to buy more liquid
assets than life insurance companies do. Their largest holding of assets is government bonds and debentures; they also hold corporate bonds and stocks.

PROPERTY AND CASUALTY (P&C) INSURANCE COMPANIES

Private pension
funds and provincial and municipal retirement funds provide retirement income
in the form of annuities to employees who are covered by a pension plan. Funds
are acquired by contributions from employers and/or from employees, who either
have a contribution automatically deducted from their paycheques or contribute
voluntarily. The largest asset holdings of pension funds are corporate bonds and
stocks. The establishment of pension funds has been actively encouraged by the
federal government both through legislation requiring pension plans and through
tax incentives to encourage contributions.

PENSION FUNDS AND GOVERNMENT RETIREMENT FUNDS