So far, the 21st century has been great to Canada. Despite the intense global financial crisis that hit the US and other countries, Canada’s economy remained strong and stable. In fact, the banking and financial situation of the country is looking better compared to the economies of other developed countries. Because of this, the country hold greater weight in terms of financial regulation, debt handling and international deliberations. Moreover, most Canadian banks successfully escaped the global financial crisis, that severely hit US banks, unharmed. Thanks to Canada’s well regulated financial and banking systems, the country was able to withstand the agonizing and distressing torture brought about by the global recession in 2008 as well as early 2009. Since Canada’s finances is in much better shape when compared to other wealthy countries, the country was recognized to have the soundest banking system worldwide. Moreover, Canada hold a spot at the Top 10 Countries listed on the Global Competitive Index of 2009 – 2010. Even President Barrack Obama praised Canada for being able to effectively manage its banking and financial systems amidst the on-going financial crisis.

So how do Canadian banks cope with the recession in the 21st century? Well, good thing, Canadian banks continue to gain and lend profits in spite the global recession. For this reason, the banking system of the country remained sound and stable. Truth be told, unlike US banks, bank bailout is not seen as a necessity in Canada.

Closing In To Canadian Banks

In general, banks in Canada can be classified in two major categories – small second tier banks and the five large, commercial banks. The five top tier and largest banks in Canada is composed of the Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Bank of Montreal, Toronto Dominion Bank, and the Royal Bank of Canada. Meanwhile, HSBC Bank Canada, Desjardins Group, ING Bank of Canada and the National Bank of Canada make up the notable second tier banks in the country.

The Big Five (referring to the top five banks in Canada) are not just your typical Canadian bank since they also fall into the category of international conglomerates, each managing a large banking division. These banks also handle other types of activities that do not have to be operated and regulated by a typical Canadian bank. This includes insurance, credit cards, brokerage, and mutual funds. Aside from that, the big five is also affiliated to large, well-known international subsidiaries. Unlike the US banks, Canadian banking systems can very much manage and hold their retail banking subsidiaries without needing the assistance of a holding company.