Banks play a vital role in North America's financial systems and the economic
development of Canada and the United States. Many events and technology advancements
have effected the way Canadians and Americans go about banking. Some of the topics that will
be explored throughout this presentation are as follows: How September 11th effected the
economy and the banks in both Canada and the United States, online banking and the
advancement of banking technology, what NAFTA has done and how it has influenced the
North American banking systems, how the government controls the banking industry of their
respective countries. And finally a comparison of a unit banking system to a branch banking
system. This essay will assess the pros and cons of the Canadian banking system and compared
to the pros and cons American banking system.
In Canada, the different types of banks are currently categorized under a three tier
system. This three tier system allows for the creation of small banks, these small banks are
able to provide local services that can adapt to meet the specific needs of their community.
The three tiers classify banks as small, medium and large. Banks that have total capital below
one billion dollars are classified as small. Banks that have a total capital amount between one
billion dollars and five billion dollars are classified as medium sized banks. And banks that
have a total capital in excess of five billion dollars are classified as large banks. This system
however, limits government aid and funding for small banks because they are not considered
to be as important as those classified as large banks. This system also states that any change in
the ownership of a bank must be approved by the Minister of Finance.
In the United States of America, it is...