Will Canada's Place Atop World's Banking (7 Yrs. Running) Continue With Oil Collapse?

Discussion in 'The War Room' started by dissolved, Jan 14, 2015.

  1. dissolved

    dissolved Steel Belt

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    http://en.m.wikipedia.org/wiki/World_Economic_Forum

    http://www.cba.ca/en/media-room/65-...orld-economic-forum-ranking-7th-year-in-a-row

    So will Canada's stranglehold as the world banking superpower continue with the collapse of oil prices? I know Scotiabank invested heavily in oil assets in the last few years. On the news the other day there was a report that Alberta is 51 billion over budget for the year if the trend continues. Cut-backs abound.

    My guess is that Scotiabank will drop back after a strong showing in recent years with RBC and TD Bank maintaining their positions as #2 and #1 respectively. CIBC and BMO lag behind yet remain solid rounding out the big 5.
     
  2. MadSquabbles500

    MadSquabbles500 Steel Belt

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    Since when has there been another banking superpower besides Jews ?

    LOL but seriously, I have never heard Canada being called that. It is always NYC and London. You can throw in Hong Kong every now and then to appease the chinese. I am sure it is not just Canadien banks with an investment in the oil shales or sand up there.
     
  3. dissolved

    dissolved Steel Belt

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    7 years in a row this Swiss ranking agency put Canadian banking at the tops of their system of analysis. The Canadian banks hardly felt a ripple in the 2008 world-wide banking crisis. Scotiabank has 791 billion in assets. They're (Canadian banks) not necessarily the biggest, but they're widely considered the strongest.

    Btw, TD Boston Gardens is named after the TD Bank. RBC (Royal Bank of Canada) is quite popular in the U.S. Carolina Hurricaines arena used to be the Scotiabank Arena (or something like that). Not sure how popular CIBC or BMO is down there for sure.

    Anyway, yeah, I expect the bottom falling out of oil prices will affect them all somewhat particularly Scotiabank. But, they're well diversified so that will likely affect future rankings in how they ride this out.
     
    Last edited: Jan 14, 2015
  4. Devout Pessimist

    Devout Pessimist Keyboard Warrior

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    The banks will be fine. They'll just fire everybody and hire temporary foreign workers at a lower wage.
     
  5. irish_thug

    irish_thug Meme Mod Staff Member Senior Moderator

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    Don't forget TD is short for Toronto Dominion. Take that bruins.
     
  6. Gandhi

    Gandhi War Room Deep State Platinum Member

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    It's a challenge for the Canadian economy and bank sector. But medium term the demand for more expensive Canadian oil will rebound as the world economy continues to grow. Canada survived a massive demand driven drop in oil price during the GFC, I expect it will survive this one, which is more supply driven. I would also point out the systemic reasons why the Canadian bank system is strong.
     
  7. IDL

    IDL Gold Belt

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    A friend of mine got laid off.

    So no, I don't think the banks are going to survive.
     
  8. Concrete

    Concrete Steel Belt

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    You're misinterpreting what you're reading.
     
  9. PabloZed

    PabloZed Brown Belt

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    The Nightly Business Report mentioned that five or six Canadian oil/energy firms had lost between 50 and 65% of their value since the summer and at least 1000 layoffs have been announced. I don't think this will hurt banking, but it will hurt the overall economy.

    I also read that Malaysia may have a sovereign debt crisis due to oil along with Venezuela and Russia.
     
  10. dissolved

    dissolved Steel Belt

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    Superpower as meaning biggest isn't what I was meaning . . . Superpower as safest/strongest systemically is what I meant with the term. They are large banks and powerful that way too though.
     
  11. dissolved

    dissolved Steel Belt

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    I agree with you.
     
  12. Stoic1

    Stoic1 Patriot

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    Banks that are actually investment firms are fucking scary as shit.
     
  13. Blitzdog

    Blitzdog White Belt

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    As a resource driven economy Canada is currently taking it on the chin while Russia is being punished. Our resiliency and reliability will somehow be rewarded down the line. Suck it up, dodge and weave.
     
  14. AlucardNatasrd

    AlucardNatasrd Blue Belt

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    Low oil prices means the death of the high-oil price industry of dirty oil like the Canadian tar sands.
     
  15. Gandhi

    Gandhi War Room Deep State Platinum Member

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    Death no - temporary unconsciousness maybe.
     
  16. Ayin

    Ayin Black Belt

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    Yep, they will eventually make it back to previous levels of developement, and then above that as soon as it's worth it to do so. Might not be in a year, but they are not going anywhere and Alberta has no interest in doing anything else.
     
  17. Snackbar

    Snackbar Green Belt

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    The banks are smarter than that. Oil is a volatile commodity, and they know it. They are not over exposed and like anyone with money and a brain they are going to come out of the other end of this much richer.
     
  18. PabloZed

    PabloZed Brown Belt

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    Canadian banks are, European banks not so much. The whole euro crisis is really a banking crisis because of all that damn Greek and Italian debt on bank balance sheets.
     

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