Here is a link to a website with some comparative data between Canadian and US banking:
Commercial Banking in the U.S. versus Canada - Graziadio Business Report
One key factor is that Canadian banks are much more centralized. Canada has 70 banks compared to 8,500 in the US and the top 6 banks in Canada hold 89% of the banking assets compared to 51% in the US. One of the problem areas leading to subprime lending problems in the US was the CRA (Communities Reinvestment Act which forces bank lending activity in low income areas. Also, in the US there has been a blind focus on home ownership as the American dream with government policy and actions that lead to irresponsible home ownership. Also, in the US for example during the 90's our Fed Chair Greenspan was given the authority to examine bank lending practices and use his regulatory authority to fix problems but he did not. The SEC had the regulatory authority to investigate and modify the practices of investment banks, but they did not. so, it may be true that Canadian banks were subject to greater regulation, the reason may not be because of more regulation but due to regulations actually being enforced. And then the cultural differences between the countries regarding lending practices to risky debtors.
---------- Post added at 08:42 PM ---------- Previous post was at 08:24 PM ----------
Quote:
Originally Posted by Baraka_Guru
You've misjudged and possibly underestimated our economy. Less than 10% of our GDP is derived from natural resources, and only 30% of our GDP is based on exporting. Keep in mind that over 70% of our exports go to the U.S.
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This may be true, I'll look into it some more. But, to me on the surface a country being a net exporter of "energy" related resources compared to a country that is a net importer of "energy" related resources has a measurable advantage when the prices of those "energy" resources are high and other resources and economic activities are in a pricing slump due to negative or slow economic growth. That is the exact condition where a country like Canada would do better than the US in relative terms during a recession. On the margins that small percentage of total GDP that is "energy" can have a disproportionate impact on economic conditions.