Recent proposals to merge (1) the Royal Bank of Canada and the Bank of Montreal, and (2) the Canadian Imperial Bank of Commerce and the Toronto Dominion Bank have sparked considerable debate in political and policy circles. Supporters of the mergers believe that greater consolidation in the industry is essential for Canadian banks to remain competitive in an increasingly global economy. Opponents argue that greater consolidation will result in reduced competition among Canadian banks, higher prices for banking services, and reduced consumer welfare.