"In the US, in contrast, where banking was fiercely competitive and regionally oriented, 2 types of banks developed. Eastern banks favoured stability and gradual expansion, while those burgeoning in the West were more venturesome. The number of banks in Canada was restricted by high capital requirements and vested interests allied to the legislators. Attempts by westerners to form their own bank were vetoed by the Canadian Banker's Association, officially incorporated in 1901. As a result the Canadian banking system became characterized by the creation of a few dominant banks with many branches. Until 1867 charters were issued by Upper Canada and Qu‚bec and subsequently by the federal government. Canadian banks were also regulated by law in considerable detail, eg, the fixing of a minimum paid-up capital ($100,000 in 1871 and $250,000 since 1890). Twenty-eight banks were chartered by 1867 and 38 by 1886. This number changed little until WWI when it declined sharply, until by 1964 only 8 remained, of which 5 were nationally significant. As a result of legislative changes and economic expansion of the West, the number of domestic banks increased to 12 and the number of foreign-owned banks to 59. In contrast, Denmark, with a population of 5 million, has about 40 commercial banks and 200 savings banks as well as a number of foreign banks; Austria has about 38 joint-stock banks, 10 private banks, 165 savings banks, 1279 rural co-operatives, 10 provincial mortgage banks and a postal savings bank; and the US has about 14,700 banks. The Canadian banking system remains basically a banking oligopoly dominated by the "Big Five", banks large not only by Canadian but by world standards. Ranked by assets in 1986, in a list of the largest banks in the free world, the Royal Bank ranked 45th; the Bank of Montr‚al 55th; the Canadian Imperial Bank of Commerce, 63rd; the Bank of Nova Scotia, 78th; and the Toronto-Dominion Bank, 87th. The "Big Five" control over 90% of bank assets in Canada."
- That's one paragraph of many from the "Banking" entry in "The Canadian Encyclopaedia" of Hurtig Publishers of Edmonton. The whole article is worth reading imho - my "commie pinko" comment in the previous post was entirely tongue in cheek - Mel Hurtig went broke for lack of a market for this extremely worthy work, and I understand it is out of print, but is available on CD-ROM. Any quality library in the English-speaking world should have it, imho, and maybe any investor with sizeable Canadian interests. Here's another short (easy to type -g-) paragraph;
"The other major type of near-bank is the savings and credit co-operative, called a Credit Union in most of Canada and a Caisse Populaire in some areas. After a slow start in the first half of the 20th century, credit unions grew rapidly by using deposits to extend loans to their members."
While I've held bank shares for years, and appreciate the dividend cheques, the great majority of my normal banking business I do at my local credit union - almost no fees, better rates, and better hours (open Saturdays). In fact, two years ago when I was convinced banks were about to take off within the week, I mortgaged a piece of property at the credit union to the limit they could lend me, and bought bank shares -g-. The only times I dealt with banks in the past were when I needed credit over the credit union limit, and then I held my nose with distaste - maybe that makes me quintessentially Canadian.
............. cheers ................... marcos
PS - none of this answers your question, Richard, but the thing is - whatever you're missing - I'm missing it too |
