I had pointed about this excellent paper on wholesale funding. The authors have explored the framework further to understanding why Canadian Banks have fared so well in this crisis. The paper is here. It says:
This paper explores factors behind Canadian banks’ relative resilience in the ongoing credit turmoil. We identify two main causes: a higher share of depository funding (vs. wholesale funding) in liabilities, and a number of regulatory and structural factors in the Canadian market that reduced banks’ incentives to take excessive risks. The robust predictive power of the depository funding ratio is confirmed in a multivariate analysis of the performance of 72 largest commercial banks in OECD countries during the turmoil.
What is particularly interesting is that Canada also has a fairly concentrated banking structure (few banks hold majority of the banking share) but still managed to survive. It was mainly because of prudent banking policies which restricted usage of wholesale funding and curbed leverage. They had regulators who wanted to regulate.