A Comparison of the Stability and Efficiency of the Canadian and American Banking Systems 1870-1925
Michael Bordo () and
Angela Redish ()
Authors registered in the RePEc Author Service: Hugh Rockoff ()
No 67, NBER Historical Working Papers from National Bureau of Economic Research, Inc
In this paper we compare the performance of the U.S. and Canadian banking systems from 1870-1925 in terms of stability and efficiency. In an earlier study we found that the Canadian banking system, based on nationwide branch banking, dominated the U.S. system, based on unit banking, on both criteria in the period 1920-1980. In this study we find that there is little significant difference between the two systems in the preceding 50 years. The difference between the two periods we attribute to the merger movement in Canada after 1900 which allowed the Canadian banking system to evolve from a system with incomplete regional diversification, and hence subject to a significant risk of an occasional failure by a large bank, to one characterized by national diversification and greater stability. The greater stability in turn allowed the financial structure of the banking system to evolve in a more efficient direction.
JEL-codes: N21 N22 (search for similar items in EconPapers)
Note: DAE ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Published as Anglo-American Financial Systems: Institutions and Markets in the Twentieth Century. Irwin One Publishers, 1995.
Published as Financial History Review, vol. 3, part 1, pp. 49-68, April 1996.
Downloads: (external link)
Journal Article: A comparison of the stability and efficiency of the Canadian and American banking systems, 1870–1925 (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberhi:0067
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Historical Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().