This paper examines the major changes in the Canadian banking system since the Second World War, with special attention to the differences between Canadian and United States developments over this period. Amendments to the Bank Act from 1954 to 1997 are discussed, along with significant developments in the Canadian financial system typically associated with changes to legislation governing banks and other financial institutions. The effects of these changes are then examined, including the market share of banks in various markets, and the developments in money market funds and mortgage securitization in Canada and the United States.