Question

The six largest chartered banks in Canada together hold ________ of the assets in the industry.

a. over 90 percent
b. nearly 75 percent
c. just over 50 percent
d. 25 percent

Answer 1

The six largest chartered banks in Canada hold over 90 percent of the assets in the banking industry, indicating a high concentration of financial power.

Step-by-step explanation:

The six largest chartered banks in Canada hold over 90 percent of the assets in the industry. This exemplifies the concentration of financial power within a small number of large institutions. For context, in the United States, as of 2013, the 12 largest banks, which represent only 0.2% of all banking institutions, controlled about 69% of all banking assets according to the Dallas Federal Reserve.

The trend toward concentration in the banking industry is not unique to Canada and can be observed in other markets as well, including in the United States where bank failures and mergers have reduced the number of banks significantly.