Laurence Booth

Laurence Booth is Professor of Finance, DBA, MBA, MA (Indiana University), BS (London School of Economics) and holds the CIT Chair in Structured Finance at the Rotman School of Management at the University of Toronto. He is on the editorial board of five academic journals, and has published over 40 articles in journals including the Journal of Finance and the Journal of Financial and Quantitative Analysis, as well as major textbooks for McGraw-Hill and Wiley. His major research interests are in corporate finance and the behaviour of regulated industries. His advice is frequently sought by the media and he has appeared as an expert financial witness in a variety of cases.

Papers Published in World Economics:

The Secret of Canadian Banking: Common Sense?

This article looks at the basic reasons why the Canadian banking system was recently judged by the World Economic Forum to be the soundest in the world. It does so by first examining the basic functions of a financial system and what Canadian banks are allowed to do as intermediaries within that system. It then considers the market structure of Canadian banking and the role of the Canadian government in regulating the financial system. It finishes with a discussion of the four basic management areas of any financial institution: liquidity management, asset management, liability management and capital management. On all dimensions the Canadian banks seem to be conservatively managed, well regulated and operating in a benign economic environment without obvious systemic risks, mainly due to the absence of a competing ‘parallel’ intermediation system as exists in the United States.

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