Canada Didn't Have Deposit Insurance Until 1967 With Many Less Bank Failures Than The Highly Regulated U.S. Banking System . Branch Branking Laws Limited Competition and Hurt Bank Asset Diversiification Leading to Banking Failures.

The Cato Institute reminds us that Canada didn't have deposit insurance until 1967:

The theory behind deposit insurance was (and remains) that banking is inherently prone to bank runs, which had been common in 19th-century America and had swept the country at the start of the Depression.

But that theory is wrong, according to such economic historians as Kevin Dowd, George Selgin, and Kurt Schuler, who argue that bank panics were almost uniquely American events (there were none in Canada during the Depression — and Canada didn’t have deposit insurance until 1967). According to these scholars, bank runs were caused by 19th-century regulations that impeded branch banking and bank “clearinghouses.” Thus, deposit insurance, hence capital minima, hence the Basel rules, might all have been a mistake founded on the New Deal legislators’ and regulators’ ignorance of the fact that panics like the ones that had just gripped America were the unintended effects of previous regulations.

How many tenured socialist professors know this? Or want to be confused by the facts?