S. banking crisis despite the relations between the two markets has informed debate for quite a while. According to OECD, the recession in Canada was not as serious as it was in U.S. And government bank bailouts as a result of bank failures were largely unheard of (42). This 'unusual' scenario is what has motivated a number of economists to suggest a number of reasons as to why Canada remained relatively stable. To begin with, there have been suggestions that the cause of Canada's stability could have been the significant level of regulation as well as conservatism as compared to the U.S.

The Canadian banking system can be describes as being relatively robust by dint of the diversification as well as size of the financial institutions in the marketplace. The banking system in Canada is also highly regulated (OECD 42). However, when it comes to the U.S., the banking system...
[ View Full Essay]