The intensification of competition in financial markets increases the likelihood of failure and fragility in the banking systems. These failures create serious concerns because of the consequent asset market contractions, insolvency of major institutions and government bailouts mounting up to...

Stephen Bell and Andrew Hindmoor compare banking systems in the U.S. and UK to those of Canada and Australia and explain why the system imploded in the former but not the latter. Canadian and Australian banks were able to make profits through traditional lending practices, unlike their...