Lots of credit unions in Canadian traditional finance (taking deposits, making loans), and they haven't been failing left and right.

I think a bigger diff is that Canada doesn't do 15/20/25 year fixed rates. Usually at most 5 years fixed and then you renegotiate and see what you can do. And a lot of variable rates.

Wait are you advocating for monopolies?

Yes. Large banks are more diversified in their portfolios, perform better, are more resilient and easier to regulate and audit by the state.

The size of a bank has nothing to do with portfolio diversification. You can, as an individual, keep a well diversified portfolio of $100.

Perform better is objective since you provided no metric for anybody to compare, same with resiliency.

Auditing can be done electronically, even via AI now.

It sounds like you’re saying since they have more monetary resources they are more stable, which is true for large companies. Banks don’t own their assets though, a customer can come at any time and remove money. In fact this was rumored to happen in Canada last year, where your 5 major banks went offline after Trudeau opened his mouth about the Freedom Convoy.