For nearly a century, the Canadian government showed little interest in creating a central bank. Canada's economy was small and operated through a network of bank branches. The bank branch network had a limited number of banks, with multiple branches connecting even the most rural areas. This network worked perfectly for Canada, a central bank was simply too big and too expensive in resources for a small, rather underdeveloped economy, while this system could easily meet demand without strain. Unfortunately, the bank branch network could only support Canada's growth. the economy for so long. By the 1930s, the Great Depression was already well underway. Canada was hit hard by the Depression due to the influence of its neighbor, the United States of America. Prime Minister Borden once again considered the creation of a central bank in Canada and finally in 1935; the Bank of Canada opened its doors for the first time. It was originally a private corporation, and three years after its opening in 1938, the Bank of Canada became a crown corporation when the Canadian government purchased all of its shares. The objective of the Bank of Canada was to protect the financial well-being of Canada and it still manages all monetary policy today. The Bank of Canada's goal of managing monetary policy is to keep inflation rates stable and as low as possible. The Great Depression lasted most of the 1930s. During this period, investors lost all confidence in the economy. Prime Minister Bennett, who served until 1935, received much criticism "concerning the lack of direct means in Canada to open international accounts." Prime Minister Bennett created the Bank of Canada Act to address key issues preventing prosperity. There was a need for Can...... middle of paper ......opened in 1820 and it still operates today. The way banks are managed in Canada is another great example of the success of Bank of Canada regulation. Even if certain regulations put in place in Canada sometimes seem out of step, it is these regulations that have allowed Canadians to continue to have a healthy and dynamic economy. The number of bankruptcies declared in Canada over the past decade has remained virtually unchanged due to credit acceptance requirements by banks. The biggest challenges facing Canada in the future will actually be moving our economy from a resource-based economy to a product-producing economy. A stable banking system, led by a regulated monetary policy, will be the first major requirement. Investment in the Canadian economy will only follow if Canada is seen around the world as having a transparent and reliable banking system..