THE ROLE OF CANADIAN CHARTERED BANKS IN UNITED-STATES BANKING CRISES - 1870-1914

This paper examines the role played by Canadian chartered banks in the banking crises that occurred in thc United States during the period from 1870 to 1914. The particular hypothesis investigated is whether Canadian chartered banks. through their US branch offices, increased their share of total US deposits during these crisis periods because they were perceived as being relatively safer than US banks. Strong empirical support is found to support the hypothesis. This finding may help to explain the large presence of Canadian chartered banks in US financial markets. The reputation for stability that these banks earned during this period undoubtedly facilitated their expansion into the US market.