Final Abstract for URS Program
In 2007-08, the United States experienced a banking crisis, as 5 of the 6 other G-7 countries. The exception? Canada, which experienced only a mild recession, with no bank failures or government bank bailouts. Further research reveals that while banking crises have been commonplace in the United States (8 occurred in the 19th century alone), they are essentially nonexistent in Canadian history. I find that the primary reasons for these differences in national experience lie not in the strictness of government regulation or the qualifications demanded of borrowers in the two countries, but in the differing structures of the banking system in the United States and Canada. Understanding these differences suggests ways the American banking system could become more stable while still meeting the demand for credit.