Bank towers are shown from Bay Street in Toronto's financial district, on Wednesday, June 16, 2010. THE CANADIAN PRESS/Adrien Veczan
Michael Morrow, managing director of mergers and acquisitions and capital markets at financial firm BDO Canada, says high inflation, lower capital markets activity and rising loan-loss provisions are all putting pressure on the big banks. RBC CEO Dave McKay said on an earnings call on Wednesday the bank is bracing for a "brief and moderate recession."
"It's definitely a leading indicator in terms of where we think the Canadian economy will be next year and where the where the risks lie." "In response to these headwinds ... we are going to continue to take actions to reposition our business to adjust to these new realities, but also continue to grow our client franchise and moderate our expense growth."
Brought to you by Freeland and the world economic forum working to bankrupt the middle class .