32 The combination of the first finding with the other two appears paradoxical, but the key barrier to competition that was absent in Canada was the prohibition of nationwide branch banking, a factor emphasized by Calomiris and Haber in their discussion of the Canadian case.
33 In addition, I put serious weight on another explanation offered in private conversation by a veteran of the international central banking community, “Those Canadian banks aren’t very adventurous,” which I take to be a compliment. 34 Why is the TBTF phenomenon so central to the debate on reform of the financial system? It cannot be because financial institutions never fail.