The Bank of Canada is the country's central bank. It was incorporated in 1934 under the Bank of Canada Act. Under the preamble of the Act, unchanged since its inception, the Bank of Canada is required "to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada."

Overall responsibility for the management of the Bank is assigned to the Board of Directors, composed of the Governor, the Senior Deputy Governor and 12 directors. The Governor and Senior Deputy Governor are appointed for seven-year terms, the directors for three years. The Deputy Minister of Finance sits on the board as a non-voting member. The Governor is the Chief Executive Officer of the Bank and is responsible for the business of the Bank. As a practical matter, since 1994, the Governing Council, composed of the Governor, the Senior Deputy Governor and the four other Deputy Governors has conducted Monetary Policy. The Executive Management Committee which includes a broader representation of management ensures that matters related to strategic direction and management are reviewed at the executive level.