Industry Analysis & Industry Trends
Despite the low interest rates that emerged as a result of the global financial crisis, the Commercial Banking industry has performed relatively well over the five years to 2015. Over this period, the overnight rate, which is strongly correlated with interest rates charged by commercial banks, is expected to increase slightly in the five years to 2015. In the coming years, projected increases in the overnight rate and improvements in corporate profit are anticipated to boost interest income from lending products. However, mounting regulation and capital requirements hold the potential to limit the flexibility of industry operators and make them less competitive on a global scale... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Commercial Banking industry operates with a high level of market share concentration. The top four companies account for an estimated 74.9% of industry revenue in 2015, representing a slight decrease from 2010. Industry trends are typically dictated by the performance of the “big six” banks: Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Scotiabank, Bank of Montreal and National Bank of Canada. In 2015, these top six banks are anticipated to hold 90.0% of the industry's total assets.
Merger and acquisition activity continues to intensify in the industry, as large Canadian banks acquire their smaller competitors in an effort to counteract mounting regulation and the current low interest rate environment... purchase to read more