A foreign investor seeking to raise capital for Canadian
business operations may choose debt financing, equity financing, or
a combination of both.
Debt Financing
Canada's financial system provides a stable and effective
infrastructure for financial services entities to conduct business
both within the country and around the world. The Bank of Canada
(an independent central bank) administers an anti-inflationary
monetary policy and expedites inter-bank operations; chartered
banks and trust companies provide deposit, credit, and payment
services; and insurance companies offer protection against a wide
range of risks.
Banks
Canada's banking system has a long history of stability. The
World Economic Forum continually ranks Canadian banks among the
most stable in the world. During the 2008 global financial crisis,
Canada's banking system demonstrated its strength due to
prudent management, sound regulation, and high capitalization.