I think that the laws the government put in place regarding financial institutions not over leveraging them selves to the point of catastrophe is what mitigates this risk.

No bank should be to big to fail and customers from one bank should not be held financially responsible for any mismanagement of the other.

The immutable fact is this is a capitalistic institution and therefor should be in competition to provide the best value it can to attract and retain customers, and not have to rely on competitors to mitigate any loss of clients financial capital related to mismanagement negligence, criminality or any other professional incompetence that places these institutions at risk

I also think that it’s reasonable to infer that major share holders by law have influence over that which they majority own, and do so with the intent of maximizing the share price, and therefore it’s reasonable to suggest that although the service fees may differ slightly from one bank to another, the service charges, interest rates etc are fixed, and that over all the different financial instruments at all the different institutions, Canadian bank fees are equal year over year.

Because there is no competition, or any reason to lower rates to attract or retain customers, there is only the sharing of profits.

Excuse, but your understanding is only of tangible benefit to the banks, who are enabling to over leveraged themselves while increasing the risk tolerance to level that would be excepted able to any individual bank.

This should be extremely concerning to anyone who chose to use any bank that is not a credit union.