This article on “Why Canada did a- have a banking crisis in 2008?” sets out an an intuitive explanation for banking stability.

A small number of large banks providing universal banking services allow for a regulator to impose strict regulatory requirement. Risk taking behaviours in banks results in greater occurrences of banking crisis & panics. Hmmmm, okay. Ho hum.

Competition in the banking sector & the political desire for the financial industry to grow into a regional hub creates increased risk taking behaviour in banks. Regulatory competition causing a fragmented regulatory landscape decreases effectiveness of regulatory bodies to forewarn of crisis. Mind blown.