A Comparison of the United States and Canadian Banking Systems in the Twentieth Century: Stability vs. Efficiency?

36 Pages Posted: 25 Oct 2001 Last revised: 5 Jun 2021

See all articles by Michael D. Bordo

Michael D. Bordo

Rutgers University, New Brunswick - Department of Economics; National Bureau of Economic Research (NBER)

Hugh Rockoff

Newark College of Arts & Sciences - Department of Economics; National Bureau of Economic Research (NBER)

Angela Redish

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: November 1993

Abstract

This paper 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 that: (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; (4) net rates of return to equity were generally higher in Canada than in the U.S..

Suggested Citation

Bordo, Michael D. and Rockoff, Hugh T. and Redish, Angela, A Comparison of the United States and Canadian Banking Systems in the Twentieth Century: Stability vs. Efficiency? (November 1993). Available at SSRN: https://ssrn.com/abstract=288470

Michael D. Bordo (Contact Author)

Rutgers University, New Brunswick - Department of Economics ( email )

New Brunswick, NJ
United States

National Bureau of Economic Research (NBER) ( email )

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Hugh T. Rockoff

Newark College of Arts & Sciences - Department of Economics ( email )

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Newark, NJ 07102
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732-932-7857 (Phone)
732-932-7416 (Fax)

National Bureau of Economic Research (NBER)

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Angela Redish

University of British Columbia (UBC) - Department of Economics ( email )

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Vancouver, BC V6T 1Z1
Canada
604-822-2748 (Phone)
604-822-5915 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

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