A financial institution , sometimes called a banking institution , is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institution:
59-494: ATB Financial is a financial institution and Crown corporation wholly owned by the province of Alberta , the only province in Canada with such a financial institution under its exclusive ownership. Originally established as Alberta Treasury Branches in 1938, ATB Financial operates only in Alberta and provides financial services to over 800,000 Albertan residents and businesses. It
118-471: A backbencher revolt forcing the government to pass three pieces of controversial financial reform acts. Credit of Alberta Regulation Act required all bankers to obtain a licence from the Social Credit Commission, Bank Employees Civil Rights Act prevented unlicensed banks and their employees from initiating civil actions , and Judicature Act Amendment Act prevented any person from challenging
177-463: A net income of $ 274.6 million. Financial institution Financial institutions can be distinguished broadly into two categories according to ownership structure: Some experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, and small-scale producers may be under-served. This
236-476: A $ 353.5-million loan provided by Toronto Dominion Bank , both occurring on October 31, 1994. The loan agreement also provided unusual concessions such as allowing dividends to continue to be paid, prevents ATB from initiating foreclosure proceedings for 20 years and included a lease that allowed the Ghermezian family the right to manage the mall for 99 years. The former superintendent claimed the financing occurred on
295-564: A body other than the Oireachtas is unconstitutional; however, as there is a presumption in Irish constitutional law that the Oireachtas acts within the confines of the constitution, any legislation passed by the Oireachtas must be interpreted in such a way as to be constitutionally valid where possible. Thus, in several cases where bodies other than the Oireachtas were found to have used powers granted to them by primary legislation to make public policy,
354-589: A consumers aggregate monthly purchases were "Alberta-made". The one-third Alberta-made program was generally ineffective in increasing domestic market demand as it was easy for consumers to meet the low threshold over the period of one month. In response, the threshold on Alberta-made products was raised to one-half in February 1941. Transfer vouchers could also be used for payments to the provincial government, including taxes, licence fees, and other provincial debts. The transfer voucher system worked considerably better than
413-541: A corporation's formation. Acts attempted by a corporation that are beyond the scope of its charter are void or voidable . Several modern developments relating to corporate formation have limited the probability that ultra vires acts will occur. Except in the case of non-profit corporations (including municipal corporations ), this legal doctrine is obsolescent ; within recent years, almost all business corporations have been chartered to allow them to transact any lawful business. The Model Business Corporation Act of
472-421: A failure to exercise an administrative discretion (e.g., acting at the behest of another or unlawfully applying a government policy) or application of discretionary powers in an irrational and wrong way. Either doctrine may entitle a claimant to various prerogative writs, equitable remedies or statutory orders if they are satisfied. In the seminal case of Anisminic v Foreign Compensation Commission , Lord Reid
531-487: A financial institution that could compete with Canadian chartered banks. Public trust was eroded during the 1980s and 1990s as high-risk loans with political motivations eroded the Treasury Branches financial footing, including a $ 100-million loss in 1996. By 1994, there were 142 Treasury Branches, 125 agencies, 3,000 staff and 80 automated teller machines in Alberta. The Klein government appointed Gordon Flynn to review
590-487: A given source. All three bills were reserved by Lieutenant Governor John C. Bowen , and the federal government posed the reference questions to the Supreme Court. In Reference Re Alberta Statutes the Supreme Court ruled all three bills as ultra vires . Aberhart sought to create a State Credit House which facilitated some banking services in small communities where larger banks had previously closed. Subsequently,
649-503: Is intra vires ('within the powers'). Acts that are intra vires may equivalently be termed "valid", and those that are ultra vires termed "invalid". Legal issues relating to ultra vires can arise in a variety of contexts: In corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause , its articles of incorporation , its by-laws , similar founding documents, or laws authorizing
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#1732844496092708-561: Is credited with formulating the doctrine of ultra vires . However, ultra vires , together with unreasonableness, was mentioned much earlier by Lord Russell in the well-known case, Kruse v Johnson , regarding challenging by-laws and other rules. Anisminic is better known for not depriving courts of their jurisdiction to declare a decision a nullity, even if a statute expressly prevents it from being subject to judicial review. Further cases such as Bromley LBC v Greater London Council and Council of Civil Service Unions v Minister for
767-560: Is one of fifteen financial institutions that participates in Canada's Large Value Transfer System . The Alberta Treasury Branches were created by the Social Credit government of Premier William Aberhart in 1938, with its roots dating back to political unrest in 1917 arising from the unmet credit demands of the West . Prior to ATB Financial's formation, Aberhart and Social Credit swept into power in
826-673: Is the largest public bank in North America and Alberta’s largest financial institution based in the province. Headquartered in Edmonton , ATB Financial has over 5000 employees. ATB is not a chartered bank , meaning it is not regulated by the Canadian federal government under the Bank Act and associated regulations. ATB is instead regulated entirely by the Government of Alberta under the authority of
885-533: Is why a target of the United Nations Sustainable Development Goal 10 is to improve the regulation and monitoring of global financial institutions and strengthen such regulations. Standard Settlement Instructions (SSIs) are the agreements between two financial institutions which fix the receiving agents of each counterparty in ordinary trades of some type. These agreements allow the related counterparties to make faster operations since
944-475: The 16th Alberta Legislature passed The Treasury Branch Deposits Guarantee Act which provided a provincial guarantee for the deposits of the Treasury Branches. The Alberta economy grew significantly in the 1970s and early 1980s due to the rising price of oil. Total loans issued by the Treasury Branches grew from $ 10.6-million in 1950 to $ 1.9-billion by 1981. However, despite significant growth, prosperity would not last forever. All Alberta industries suffered in
1003-683: The 1935 Alberta election in a wave of unrest following scandals surrounding the United Farmers Premier John Edward Brownlee . Aberhart's government sought radical monetary reform in a province which was devastated by the Great Depression , as well as greater economic autonomy from both the federal government and financial institutions based largely in Toronto and Montréal. However, in two years Aberhart's government failed to bring forward promised reforms, which resulted in
1062-482: The 1955 Alberta election the Treasury Branches came under scrutiny for allegations of preferential treatment for loans to members of the Legislative Assembly (MLAs), as well as preferential contracts awarded to firms indebted to the provincial government. The Treasury Branches provided significant loans to a handful of road construction companies, with the firm Sparling-Davis provided $ 4.5-million in loans, which
1121-557: The ATB Financial Act and associated regulations; the legislation is modeled on the statutes, regulations, and guidelines which govern banks and other federally chartered financial institutions. ATB is not a member of the Canada Deposit Insurance Corporation or Alberta's provincial Credit Union Deposit Guarantee Corporation; deposits are instead fully guaranteed by the Government of Alberta itself. ATB Financial
1180-513: The Financial Supervisory Authority of Norway , Germany with Federal Financial Supervisory Authority and Russia with Central Bank of Russia . Merits of raising funds through financial institutions are as follows: Ultra vires Ultra vires ('beyond the powers') is a Latin phrase used in law to describe an act that requires legal authority but is done without it. Its opposite, an act done under proper authority,
1239-471: The Supreme Court of Ireland held that the Oireachtas may delegate certain powers to subordinate bodies through primary legislation, so long as these delegated powers allow the delegatee only to further the principles and policies laid down by the Oireachtas in primary legislation and not craft new principles or policies themselves. Any piece of primary legislation that grants the power to make public policy to
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#17328444960921298-843: The United States , where the key governing bodies are the Federal Financial Institutions Examination Council (FFIEC), Office of the Comptroller of the Currency – National Banks, Federal Deposit Insurance Corporation (FDIC) State "non-member" banks, National Credit Union Administration (NCUA) – Credit Unions, Federal Reserve (Fed) – "member" banks, Office of Thrift Supervision – National Savings & Loan Association, State governments each often regulate and charter financial institutions. Countries that have one consolidated financial regulator include: Norway with
1357-710: The Aberhart government created the Alberta Treasury Branches through a series of Orders in Council in late-August and early-September 1938, following the judicial defeat of the Social Credit monetary reforms at the Supreme Court. The Aberhart government authorized the Treasury Department to establish "branches of the provincial treasury" and with $ 200,000 of provincial funds as capital the first Alberta Treasury Branch
1416-566: The Civil Service have sought to refine the doctrine. In Hammersmith and Fulham London Borough Council v Hazell , the House of Lords held that interest rate swaps entered into by local authorities (a popular method of circumventing statutory restrictions on local authorities borrowing money at that time) were all ultra vires and void , sparking a raft of satellite litigation . Mark Elliott ( St Catharine's College, Cambridge ) proposes
1475-575: The International category. Based in Calgary, it had a three-year-old incubator, ATB Ventures. In 1998 ATB filed a lawsuit against the former acting superintendent of the bank and the Ghermezian family alleging the family bribed the official to issue a commercially unreasonable loan guarantee for West Edmonton Mall . The $ 65-million, 30-year loan in question was issued at no interest, and fully guaranteed
1534-420: The Treasury Branches operations, Flynn recommended a number of changes including greater autonomy, financial accountability measures and the appointment of a Board of Directors . Flynn's recommendations were reviewed by a working group chaired by former federal finance minister Don Mazankowski , which provided nine further recommendations for the operations of ATB. Mazankowski recommended the government articulate
1593-465: The Treasury Branches served as government offices and propaganda centres. The Aberhart government was able to utilize the Treasury Branches to operate the "Interim Program", which was an attempt to provide the citizen's dividend promised by the Social Credit government in 1935. The Interim Program's name indicated the temporary nature of the program, which would remain in place until a complete system of Social Credit could be established in Alberta. Under
1652-550: The United States states that: "The validity of corporate action may not be challenged on the ground that the corporation lacks or lacked power to act." The doctrine still lives among non-profit corporations or state-created corporate bodies established for a specific public purpose, such as universities or charities. Historically all companies in the United Kingdom were subject to the doctrine of ultra vires and any act which
1711-698: The balance is available to be withdrawn without penalty). The calculation basic rate system was deemed cumbersome and replaced in February 1941 with a centralized list compiled by the Department of Industries and Labour, based on the type of products and services sold and the location of the business. By early 1942 there were over 7,125 merchants enrolled under the interim program. Government employees were partially paid with Treasury Branch vouchers, with single employees, widows and widowers receiving 15 per cent of their salary in voucher form. Married employees were paid between 15 and 25 per cent of their salary in vouchers, and
1770-416: The branches. Merchants were provided a means to withdraw a certain amount of cash without being charged a penalty in order to replace goods sold for vouchers. A formula was developed to determine the "basic rate", the amount of cash the merchant could withdraw without penalty by taking the merchant's annual profit margin as a percentage and subtracting it from 100 per cent (i.e. 10% margin less 100% means 90% of
1829-511: The business of business" applied to several government owned businesses that competed against similar private companies. ATB as a financial institution competed against chartered banks and credit unions, making it prime target for privatization. The government review led by Gordon Flynn recommended privatization; however, support from the Progressive Conservative rural caucus, and the ongoing and high-profile West Edmonton Mall lawsuit in
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1888-585: The calculation was made after all deductions. This policy encouraged employees to use the service instead of other banks. The bonus system ceased in April 1945 and a contingency of $ 480,738 was paid out of the province's general revenue fund to a reserve fund for the purpose of covering the cumulative earned bonuses during the program. The Treasury Branches proved to be successful as deposits grew to $ 24-million by 1946, and by 1950 there were 45 Treasury Branches, six sub-branches, and 110 agencies employing 331 staff. During
1947-546: The concept of ultra vires can still arise in the following kinds of activities in some states: In many jurisdictions, such as Australia, legislation provides that a corporation has all the powers of a natural person plus others; also, the validity of acts which are made ultra vires is preserved. Under constitutional law , particularly in Canada and the United States , constitutions give federal and provincial or state governments various powers. To go outside those powers would be ultra vires ; for example, although
2006-620: The constitutionality of Alberta's laws in court without receiving the approval of the Lieutenant-Governor in Council . In August 1937, the federal government disallowed all three acts. The Supreme Court of Canada , in answering reference questions posed by the federal government, unanimously ruled that such disallowance was valid. Aberhart returned with three new bills, Bank Taxation Act (Bill 1) levying provincial taxes on banks' paid-up capital and reserve funds at punitive rates, Credit of Alberta Regulation Act, 1937 (Bill 8) similar to
2065-570: The court did not use the term in striking down a federal law in United States v. Lopez because it exceeded the constitutional authority of Congress, the Supreme Court still declared the law to be ultra vires . According to Article 15.2 of the Irish constitution , the Oireachtas (parliament) is the sole lawmaking body in the Republic of Ireland . In the case of CityView Press v AnCo , however,
2124-470: The doctrine concerning commercial companies. The position is now regulated by the Companies Act 2006 , sections 31 and 39, which similarly significantly reduces the applicability of ultra vires in corporate law. However, it can still apply to charities, and a shareholder may apply for an injunction , in advance only, to prevent an act which is claimed to be ultra vires . According to American laws,
2183-626: The early 1980s owing to high interest rates, low world commodity prices, and the National Energy Program . The Treasury Branches were no exception, posting the first of six consecutive years of losses in 1983. Other regional financial institutions suffered at this time with the collapse of the Canadian Commercial Bank and the Northland Bank in 1985. By 1989 the Treasury Branches had an accumulated deficit of CA$ 150 million. ATB
2242-401: The government or the Treasury Branches. Prior to the formation of the commission the government responded to the allegations by introducing a bill in 1955 which prevented MLAs from borrowing from the Treasury Branches. The 1967 Royal Commission on Banking and Finance led by Justice Dana Porter recommended that a deposit insurance scheme be implemented for Canadian banks. Subsequently, in 1969
2301-430: The government's residential mortgage loan program. In 1984 the Treasury Branches offered US dollar savings accounts in partnership with Citibank . Automated teller machines were introduced in 1989 and in 1990 the Treasury Branches became the first Canadian financial institution to offer telephone banking services. In the 1990s, the government reformed Alberta Treasury Branches with the intention of transforming it into
2360-464: The impugned primary legislation was read in such a way that it would not have the effect of allowing a subordinate body to make public policy. In these cases, the primary legislation was held to be constitutional. Still, the subordinate or secondary legislation, which amounted to creating public policy, was held to be ultra vires the primary legislation and was struck down. In UK constitutional law , ultra vires describes patents, ordinances, and
2419-421: The interim program, the Treasury Branches issued non-negotiable transfer vouchers in place of regular currency that could be redeemed at participating merchants in the province. Consumers who purchased goods from participating merchants that were partially produced in Alberta would earn a "bonus" in their account of up to three per cent, the full bonus (in the form of transfer vouchers) being earned if one-third of
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2478-674: The late 1990s created significant uncertainty for the value of ATB, scuttling any plans for privatization. In its 2018 report, the Parkland Institute argued against privatization of ATB Financial noting the policy implications available to the Government of Alberta through a fully government controlled financial institution. The Parkland Institute argued ATB could be used to provide low cost financing to Albertans, financing social housing, financing climate change goals, purchasing government debt and providing for agricultural growth. The Parkland Institute further argues against privatization due to
2537-559: The like enacted under the prerogative powers of the Crown that contradict statutes enacted by the Crown-in-Parliament . Almost unheard of in modern times, ultra vires acts by the Crown or its servants were previously a major threat to the rule of law . Boddington v British Transport Police is an example of an appeal heard by the House of Lords that contested that a by-law was beyond
2596-675: The losing securities. The Progressive Conservative government responded in July 2009 when Finance Minister Iris Evans announced a number of government programs to strengthen ATB's balance sheet including providing $ 600-million in notational capital, and changes to requirements for capital adequacy test . In 2015, the New Democratic government capitalized ATB Financial with an additional $ 1.5-billion to promote lending access to small and medium-sized businesses. In 2021 Fast Company named ATB Financial one its 100 Best Workplaces for Innovators in
2655-449: The money supply via fractional-reserve banking . Regulatory structures differ in each country, but typically involve prudential regulation as well as consumer protection and market stability. Some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers. Countries that have separate agencies include
2714-573: The orders of Premier Ralph Klein and other provincial politicians, although a probe by the auditor general found no evidence of government direction. The lawsuit was settled in December 2002, with details of the settlement remaining private. Throughout its history ATB Financial has remained a prominent candidate for proponents of privatization in Alberta. Under Premier Ralph Klein the Government of Alberta moved to privatize government corporations and services. The Klein mantra of "getting government out of
2773-506: The powers conferred to it under section 67 of the Transport Act 1962 . In administrative law , an act may be judicially reviewable for ultra vires in a narrow or broad sense. Narrow ultra vires applies if an administrator did not have the substantive power to make a decision or it was wrought with procedural defects. Broad ultra vires applies if there is an abuse of power (e.g., Wednesbury unreasonableness or bad faith) or
2832-527: The previous attempt to issue a citizen's dividend in the form of prosperity certificates in 1936. The Treasury Branches proved popular amongst Albertans, resulting in the government establishing 22 branches and 270 branch agencies by June 1939. The Treasury Branches were first authorized to provide loans in 1941 to be approved under a centralized "loan committee" overseen by the Treasury Branches Superintendent. Expanding into lending services
2891-481: The previous disallowed act, but covering all "credit institutions", and Accurate News and Information Act (Bill 9) requiring newspapers to print "clarifications" of stories considered inaccurate by the Social Credit Board, and to reveal their sources on demand, and also authorizing the provincial government to prohibit the publication of any newspaper, any article by a given writer, or any article making use of
2950-660: The private sector. Provincial Treasurer Jim Dinning quickly introduced legislation to create an independent board of directors made up of government appointees was established in 1996 and ATB formally became an autonomous provincial Crown corporation on October 8, 1997. The government also appointed former Metropolitan Life CEO Paul Haggis as the new superintendent of ATB in 1996. The Alberta Treasury Branches rebranded in January 2002 as ATB Financial in an effort to gain stronger brand recognition in urban areas such as Calgary and Edmonton. By 2002 ATB Financial controlled 15 per cent of
3009-642: The province's retail banking, but lagged in the cities with seven per cent in Calgary and eight per cent in Edmonton. The official change of name for the crown corporation did not occur until 2017. ATB was not immune to the 2008 financial crisis , when over $ 1.2-billion of non-bank sponsored asset-backed commercial paper became illiquid . The financial crisis resulted in special provisions for credit loss of $ 253-million and $ 225-million in 2008 and 2009. Alberta's Auditor-General noted that inappropriate incentives may have been to blame for insufficient due diligence on for
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#17328444960923068-471: The public policy goals and benchmarks for the institution, ATB must operate at an arms-length from the government, operate under a board of directors, be provided equal treatment against other private sector banks, modernized to allow ATB to compete with modern banks, offer new and in demand financial services and products, deliver programs with a for profit emphasis, remain cost conscious and profit motivated, and be subject to an accountability regime similar to
3127-414: The time used to settle the receiving agents is conserved. Limiting each subject to an SSI also lowers the likelihood of a fraud . SSIs are used by financial institutions to facilitate fast and accurate cross-border payments. Financial institutions in most countries operate in a heavily regulated environment because they are critical parts of countries' economies, due to economies' dependence on them to grow
3186-494: The vast network of rural and remote branches ATB operates, which would not be financially viable for a traditional bank without a similar mandate. In March 2019, Finance Minister Joe Ceci revealed the Government of Alberta had received a detailed offer from Scotiabank to purchase ATB Financial; however, the amount offered to privatize ATB was not provided by Ceci. As of May 24, 2018, ATB reported assets of $ 51.9 billion, deposits of $ 32.7 billion, loans of $ 44.1 billion, and
3245-423: Was more than 20 per cent of the Treasury Branches overall loans. Premier Ernest Manning reluctantly approved a Royal Commission to look into the lending practices of the Treasury Branches the day before the 1955 election, the commission was led by Hugh John Macdonald and James Mahaffy . The commission was provided with narrow terms of reference and found there was no evidence of maladministration or wrongdoing by
3304-556: Was necessary to gain a stronger presence in retail areas, as many merchants who operate with the Treasury Branches also maintained a separate account at another bank to ensure access to credit. The only services provided up to 1943 were term savings accounts at 1.5 to 3 per cent interest, and the sale of automobile, hunting and fishing licences. Furthermore, the government charged consumers a two per cent penalty on cash withdrawals to continue to incentivize Albertans to use non-negotiable transfer vouchers to ensure capital did not flow out of
3363-499: Was opened in Rocky Mountain House on September 29, 1938, followed by branches in Edmonton , Andrew , Grande Prairie , Killam , and St. Paul which opened the next day. The first employees of the Treasury Branches were provincial civil servants with previous banking experience, many of whom were transferred from the Treasury Department's Sales Tax Branch following the abolishment of the provincial sales tax . Besides banking,
3422-411: Was outside of the objects specified in a company's memorandum of association would be ultra vires and void . That result was commercially unpalatable. It led to companies being formed with extremely wide and generic objects clauses permitting a company to engage in all manner of commercial activities. The position was changed by statute by the Companies Act 1985 , which essentially abolished
3481-656: Was the subject of scandal in the late 1980s after clients such as Peter Pocklington 's Gainers Foods and the Ghermezian Brothers' West Edmonton Mall defaulted on loans. The Treasury Branches did begin to innovate in the early 1980s as well, joining the Canadian Payments Association in 1983 allowed the institution to clear cheques, and the Branches developed an interest rate shielding policy for agricultural customers and delivered special payments on behalf of
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