$517 Billion in Unrealized Losses Hit US Banking System, FDIC Says 63 Lenders on Brink of Bankruptcy

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The US banking system differs from those in other developed countries in several key ways. The US has a much larger number of banks, with around 7,000 compared to just 28 in Canada. The US also has a dual banking system with both federal and state charters, while most other countries have a more centralized national system. US banks face more restrictions on investments in industrial firms and vice versa compared to banks in Canada and Europe.

Regulations also vary, with US rules focused more on consumer protection, privacy, and anti-money laundering in addition to safety and soundness, leading to practices like the Community Reinvestment Act's low-income lending requirements. Mortgage lending also differs, with shorter terms, larger down payments, prepayment penalties and less securitization in Canada compared to the US.However, the US and foreign systems share core functions like deposit-taking, lending, and payment services. Recent decades have also seen the US system become more similar to those abroad through consolidation, expanded banking powers, and removal of branching and ownership restrictions. Still, structural differences remain, with the US system less concentrated and more fragmented compared to the large national champions seen in many other countries.