Evolution of the canadian banking system and features of its regulation at different stages of economic reform

In the wake of the 2008 financial crisis, international observers praised the stability of Canada's banks. When financial institutions in the United States and the United Kingdom collapsed, Canada did not experience any bank failures. The World Economic Forum'sGlobal Competitiveness Reportrated Canada's banking system as the most sound in the world. Historically, bank failures have been quite rare in Canada. Some authors argue that the stabilizing features of Canada's financial system were established in the first five years after the creation of the Canadian nation-state in 1867. This paper will examine the making of the Canadian banking law in 1871, an event widely regarded as a crucial turning point in Canadian financial history.

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Stability in the Absence of Deposit Insurance: The Canadian Banking System, 1890-1966

Journal of money credit and banking ◽

10.2307/2077794 ◽

1995 ◽

Vol 27 (4) ◽

pp. 1137 ◽

Cited By ~ 20

Author(s):

Jack Carr ◽

Frank Mathewson ◽

Neil Quigley

Keyword(s):

Deposit Insurance ◽

Banking System ◽

Canadian Banking

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The U.S. Banking System From a Northern Exposure: Stability versus Efficiency

The Journal of Economic History ◽

10.1017/s0022050700014509 ◽

1994 ◽

Vol 54 (2) ◽

pp. 325-341 ◽

Cited By ~ 33

Author(s):

Michael D. Bordo ◽

Hugh Rockoff ◽

Angela Redish

Keyword(s):

Interest Rates ◽

Banking System ◽

The United States ◽

Bank Failures ◽

Rates Of Return ◽

Data Set ◽

The Cost ◽

Canadian Banking ◽

Comparative Stability ◽

The U.S

This article asks whether the vaunted comparative stability of the Canadian banking system has been purchased at the cost of creating an oligopoly. We assembled a data set that compares bank failures, lending rates, interest paid on deposits, and related variables over the period 1920 to 1980. Our principal findings are (1) interest rates paid on deposits were generally higher in Canada; (2) interest income received on securities was generally slightly higher in Canada; (3) interest rates charged on loans were generally quite similar; and (4) net rates of return to equity were generally higher in Canada than in the United States.

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