What the U.S. can learn from Canada's banking system

Banking Industry Trends - US banking industry is shrinking, with a significant decline in community banks from approximately 7,000 to 4,000 after the crisis [1] - The four largest US banks, JP Morgan Chase, Wells Fargo, Bank of America, and Citigroup, hold an increasingly large percentage of the banking industry's assets [2] - The US has nearly 4,500 banks, a large number compared to countries with similar economic development [2] International Comparison - Canada has a concentrated banking system with only 79 banks [3] - The Canadian banking system was named the soundest in the world by the World Economic Forum during the 2008 financial crisis [3] - A concentrated banking system like Canada's may limit competition and innovation, potentially impacting small business lending, employment, innovation, productivity, and GDP growth [4] Regulatory Environment - Regulators may be more inclined to let a small bank fail than a big one, incentivizing banks to consolidate [2] - Canada's regulatory culture is considered good, contributing to the stability of its banking system [4]