Some Historical Remarks on American and Canadian Banking Reform

• Published date: 01 December 2013
• Author: Tara Mrejen
• DOI: 10.1177/0003603X1305800407
• Date: 01 December 2013
• Subject Matter: Article

THE ANTITRUST BUL L E T I N :Vol. 58, N o. 4/Winte r 2013 :651

Some historical remarks on American

and Canadian banking reform

BY TARA MREJEN *

This article makes several historical remarks on the structural differ-

ences between the Canadian and American banking systems. It

argues that consideration of the context, form, and substance of bank-

ing legislation can help determine the distinct regulatory culture of

legis lativ e refor m; in com paris on to the U nited S tate s, Cana da’s

response to financial crisis is noticeably cons ervative. Part II of the

article characterizes the regulatory steps taken by both countries dur-

ing the years 1933–35. Part III provides basic background to the cur-

rent b ank in g leg al reg ime i n Ca nad a; a di scu ssi on of t he du al

banking system in the United States is beyond the scope of this arti-

cle. Part IV concludes by discussing the global financial crisis in 2008

and contemplates whether several themes from 1933–35 resurface

despite legislative development throughout the historical period. The

historical approach highlights Canada’s distinctive legacy of com-

mercial banking regulation, which perhaps is still pertinent today

when comparing banking laws, their enforcement, and their general

impact on the respective economies.

KEY WORDS:commercial banking regulation; central banking system; legal

history; Great Depression; global financial crisis

© 2013by Federal Legal Publications, Inc.

* B.C.L./LL.B., McGill University Faculty of Law; B.A. (Hons), McGill

University.

AUTHOR’S NOTE: I thank Professor Tom Velk, Larissa Smith, and the rest of my col-

leagues for their insightful comments. All errors are my own.