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1817 – Bank of Montreal

Before Canada’s first bank was established, barter, as well as coins and paper currency were used as payment for goods. There was no single universally accepted currency, and merchants performed what were considered banking services. In 1792, a group of Montreal merchants formed the Canada Banking Company. However, as it could not obtain government permission to issue bank notes, it failed after a few short years. As interest and the need for banking services grew, the Bank of Montreal first opened its doors in Montreal in 1817.

In the early 1800s, Montreal was British North America’s leading commercial centre. At the time of its creation, the Bank of Montreal was a joint stock operation owned by 289 subscribers. It was not until 1822 that its charter was approved by the Province of Lower Canada. The new bank was vital part of the developing economy of Lower Canada. Bank notes had been in chronic short supply: a mishmash of Spanish, French, English, American, Mexican and German coins were used. Since a central bank did not exist, the Bank of Montreal, along with other banks, issued their own bank notes. The Bank of Montreal also filled other roles in the growing economy, offering commercial loans, being a safe repository for funds and financing overseas trade.

The Bank of Montreal was instrumental in financing the development of the country. It provided funds for the building of Canada’s first canal, and in the 1850s, for the Grand Trunk Railway. In the 1880s, the bank was a key lender in financing the construction of the Canadian Pacific Railway, Canada's first transcontinental railway.

For many years after Confederation, Canada did not have a central bank. The development of a few large banks meant the federal government did not need a central bank to handle its financial business. The Bank of Montreal, as the nation’s largest bank, served as Canada’s central bank until 1935 when the Bank of Canada was established.

The Bank of Montreal grew by merging with several other Canadian banks: Exchange Bank of Yarmouth (1903), People’s Bank of Halifax (1905), People’s Bank of New Brunswick (1907), Bank of British North America (1918), Merchants Bank of Canada (1922), and the Molson Bank (1925). In 1984, the Bank of Montreal expanded its U.S. operations by acquiring Chicago’s Harris Bankcorp.

With over 1,000 branches, t he Bank of Montreal is Canada’s fifth largest bank. It offers a wide array of products and services both domestically and abroad. The Bank of Montreal has grown from its humble beginnings in 1817—it now has over 30,000 employees and almost a quarter of a trillion dollars in assets.

Links

Bank of Montreal
Source: Wikipedia
http://en.wikipedia.org/wiki/Bank_of_Montreal

Source: BMO Financial Group
www.bmo.com

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