We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks … Canadian banks. The banking sector in Canada provides a unique setting in which to examine market discipline along with the … prospects of proposed reforms, because Canada has no history of government bailouts. Our results suggest that large banks likely …

as a supplement to existing risk-weighted capital requirements. Canadian banks offer a useful case study in this respect … banks' leverage management. In contrast to a number of countries without regulatory constraints, leverage at major Canadian … banks was relatively stable leading up to the crisis, reducing pressure for deleveraging during the economic downturn …