Canada’s banking giants released their third-quarter financial results over the course of the past week, with those reports reflecting how the economy has shifted gears throughout 2022.
Lower profits due to funds set aside for potential future loan losses were the name of the game for the country’s major players, a trend that showed financial institutions are ramping up preparations for an economic downturn next year, according to an expert market analyst.
Banks have assumed that the Canadian and US economies are going to face a moderate recession in 2023. They’re preparing for that by setting this money aside and they’re being prudent in light of this uncertainty.”
Most of the country’s largest banks have sounded the alarm on potential economic difficulty ahead, with RBC becoming the first to project a mild recession moving into next year.
It said that inflation, rising interest rates and labour market shortages would bring about a “moderate” contraction in 2023 – one that would likely prove less severe than previous instances. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # RECESSION
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