Despite the low interest rates that emerged as a result of the global financial crisis, the Commercial Banking industry in Canada has performed well over the five years to 2017. During this period, the overnight rate, which is strongly correlated with interest rates charged by commercial banks, reached historic lows, before rising again in 2017. Over the five years to 2022, projected increases in the overnight rate and improvements in corporate profit are anticipated to boost interest income from lending products. However, the remarkable debt levels of Canadian households make it increasingly likely that a period of deleveraging will begin over the next five years.
Operators in this industry provide financial services to retail and business clients in the form of commercial, industrial and consumer loans. Banks also accept deposits from customers, which are used as a source of funding for the loans. Banks in this industry include those that are regulated by the Office of the Superintendent of Financial Institutions.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.