Canadian Banker Says US Banks Need Consolidation

Despite some bruises, RBC and its U.S. subsidiary RBC Bank which has a presence in six Southern states have fared comparatively well through the economic downturn. President Barack Obama praised the Canadian banking system last month, saying the conservative approach there has provided the nation with a vibrant banking sector without the "wild risks" of Wall Street.

RBC has built its presence in the U.S. Southeast through three acquisitions in the past few years, but executives noted that they aren't all that interested in making any acquisitions right now. Scott Custer, chief executive of RBC Bank, said healthy companies like his don't want to bog down their balance sheets with the questionable finances of struggling companies.

As a foreign bank, RBC is not qualified to receive TARP funding.

Westlake said he expects more consolidation in the banking industry before it can fully revive. He expects there to be more large national banks, noting that Canada's financial system is driven by a handful of major banks.