Canadian Industrial Outlook: Banking—Winter 2018
The Conference Board of Canada, 14 pages
April 4, 2018
This report examines the short-and medium-term economic and profitability outlook for Canada’s banking industry.
- Housing Market—With Canadian interest rates expected to continue rising through to 2020 and more stringent mortgage regulations on the horizon, a more anemic demand for mortgages is forecast over the next several years, weighing on the banking sector’s profitability.
- Workforce Composition—Banks are responding to emerging fintech competition by hiring more IT workers to upgrade the banks’ technological infrastructure. These high-skilled jobs have put upward pressure on industry wages, though the resulting productivity gains have been large enough to prevent higher labour costs.
- Pension Funds—Canada is home to some of the world’s largest pension funds that have spearheaded growth in the securities, portfolio management, and pension funds segment.