After the huge mortgage crisis in the United States and resulting recession it's more apparent than ever that Canada has the best banking system in the world. Not only was Canada out of the recession than almost any other country in the world, but Canadians didn't show much stress about the safety of their money.
So, why is the Canadian banking system the best in the world? Well, there are many reasons, for starters when comparing it to the banking system of the United States there are far less banks, Canada has 6 major banks (25 in total), and the US has close to 8500. Europe and Asia also have huge banks, and massive banking systems, and even they don't come close to the stability and safety of Canadian banks.
You've probably heard of the US bailing out many of it's banks because it saw them as too important and big to fail. Well, Canada has never had to bail out any of it's banks in modern times, not a single one. But the US wasn't alone, Britain had to bail out the Bank of Scotland, and nationalized the banks Northern Rock and Bradford & Bingley in 2008. Iceland's banks have gone completely bankrupt, with the country being unable to even help them out.
Even Asia can't compare to banking in Canada, back in 2009 China, Japan and South Korea, three of the biggest economies in the world let alone Asia, started to buy up all of the toxic assets held by Asian financial institutions. This was to prevent any possible collapse of their banks and economies, and to stabilize their banking systems.
Some quick facts about Canadian banking:
- only 6 major banks / US has close to 8500 banks
- better rules in place / better laws than most other countries have
- rules and regulations protect the clients first, not the banks first
- the major banks avoided investing in sub-prime mortgages
- things like RRSPs and TFSAs
- Canadian dollar is very highly rated
- well managed banks
- Canadian laws and regulations help to stop clients from making big mistakes when investing and borrowing
- Canadian banks aren't allowed to accept deposits subsidiaries of foreign banks
- Canadians use "common sense" when it comes to banking
- The Canadian government has tightened banking regulations over the years, whereas the US banks have loosened theirs