"Both Australian and Canadian banks are rated highly by the three major global ratings agencies (including Moody's Investors Service) and they share similar market structures.
When compared with their global peers, the two banking systems are among the most concentrated in the world, Fitch said in a report on Monday.
However, Australian banks' persistent dependence on offshore wholesale credit markets for funding make them riskier, Fitch director of financial institutions, Tim Roche, told AAP.
"The Canadian banks have a much stronger funding profile - they're less reliant on wholesale funding and (have) much more deposit funding within their mix," he said.
Canada's big six banks rely on deposits to support between 68 to 88 per cent of their funding, according to Fitch's report.
By contrast, deposits account for between 54 and 65 per cent of the funding mix for Australia's big four banks, with term debt sourced from offshore credit markets accounting for around 20 per cent."
