Regulatory Changes and New Banking: the Case of Canada
This paper documents some stylized facts about Canadian banking. I explore these empirical facts in the context of the Canadian financial legislation. I find that, over the 1990s, Canadian businesses became more heavily dependent on financial markets as their primary source of external funding. Data display a trend towards a more ``market- oriented'' financial system. The analysis also suggests that this new trend started after the 1980 banking legislation amendments. The trend was considerably accentuated after the 1992 amendments. I construct a new series for market-oriented activities of Canadian banks that converts the non-interest income of banks into an asset equivalent. Combined with other evidence, this credit equivalent series suggests a healthy growth trend in banking. Financial institutions are broadening their business lines and participating more actively in the arrangement of market financing, a phenomenon that could be called new banking.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stiroh, Kevin J, 2004.
"Diversification in Banking: Is Noninterest Income the Answer?,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 36(5), pages 853-882, October.
- Kevin J. Stiroh, 2002. "Diversification in banking: is noninterest income the answer?," Staff Reports 154, Federal Reserve Bank of New York.
- Freedman, C., 1998. "The Canadian Banking System," Technical Reports 81, Bank of Canada.
- Freedman, C. & Goodlet, C., 1998. "The Financial Services Sector: Past Changes and Future Prospects," Technical Reports 82, Bank of Canada.
- Charles Freedman & Walter Engert, 2003. "Financial Developments in Canada: Past Trends and Future Challenges," Bank of Canada Review, Bank of Canada, vol. 2003(Summer), pages 3-16. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0408011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.