Which federal regulation governs federally chartered financial institutions?

The Bank Act is the federal regulation that specifically governs federally chartered financial institutions in Canada. This piece of legislation outlines the framework for the operation, organization, and regulation of banks, including requirements for governance, capital, and consumer protection. The Bank Act is crucial for ensuring the safety and stability of the banking sector, as it establishes the legal and operational standards that banks must adhere to in their daily operations.

In contrast, while the Financial Institutions Act deals with the regulation of certain financial institutions, it does not cover federally chartered banks, which fall under the jurisdiction of the Bank Act. The Insurance Companies Act regulates insurance providers, and the Real Estate and Mortgage Services Act pertains to real estate practices rather than banking regulations. This distinction highlights the specific focus of the Bank Act on the unique needs and challenges faced by banks in the Canadian financial landscape.