A comparison of Canada's branch banking system to the Unit banking system of the United States.

Essay by bigtyHigh School, 12th gradeA, June 2003

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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...