Key Takeaways

• Canadian banks demonstrate higher operational efficiency but operate on a smaller scale than U.S. banks.

• U.S. banks excel in scale and diversity but face greater variability in operational efficiency.

• Revenue per employee and efficiency ratios highlight structural differences between the two markets, with Canadian banks benefiting from concentration and U.S. banks leveraging diverse revenue streams.

The Canadian and U.S. banking sectors provide a striking contrast in structure, scale, and operational focus. Canada’s highly concentrated banking system enables its largest banks to deliver consistent performance metrics, while the U.S. banking market thrives on its diversity but exhibits greater variability in efficiency.

A Tale of Two Banking Models: Canada’s Stability vs. U.S. Scale