This study analyses the relation between market discipline and bank charter value using a panel data set of publicly listed domestic banks in Australia and Canada over the period of 1995–2011, with a focus on the 2007–2008 global financial crisis (GFC). Overall, the results show a positive relation between market discipline and bank charter value, but this relation is weaker in the post-GFC period. Our findings reveal that in the presence of market discipline, bank capital, contingent liabilities and non-interest income are important sources of charter value. These findings have important policy implications related to bank stability. The results are robust to several model specifications.