EconPapers    
Economics at your fingertips  
 

An Overview Of The Canadian Banking System: 1996 To 2015

Robert McKeown
Additional contact information
Robert McKeown: Queen's University

No 1379, Working Paper from Economics Department, Queen's University

Abstract: From 1996 to 2015, total assets at Canadian and foreign banks operating in Canada grew four-times in size. This growth occurred with neither a significant regulatory change, such as the repeal of Glass-Steagall, nor the introduction of new business lines, such as wealth management or investment banking. Using data from CANSIM and a little used dataset from OSFI, I describe how the Canadian banks earn revenue, fund business activities, and pay expenses. The success of the Canadian banking system can be attributed to: i) a focus on retail and branch-level banking, ii) a preference for deposit-financing, and iii) minimizing costs, particularly noninterest expenses. Furthermore, I provide a broad overview of the data, accounting rules, and trends in Canadian banking. Estimating a reduced form model similar to DeBoskey and Jiang (2012), I find no evidence that the Canadian banks manipulated the provision for credit losses to ‘smooth’ earnings.

Keywords: Bank; Bank Lending; Borrowing; Commercial Banks; Financial Intermediaries; Retail Bank; Canada; Canadian (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse
Date: 2017-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1379.pdf First version 2017 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1379

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().

 
Page updated 2019-12-10
Handle: RePEc:qed:wpaper:1379