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 five-year period, the overnight rate, which is strongly correlated with interest rates charged by commercial banks, is expected to increase slightly. Over the five years to 2020, industry revenue is forecast to increase. Projected increases in the overnight rate and improvements in corporate profit are anticipated to boost interest income acquired from lending products... purchase to read more
Industry Report - Industry Products Chapter
Consumer lending is anticipated to generate 33.4% of industry revenue in 2015. Principal products in this segment include home equity loans and lines of credit and auto loans. Automotive financing, in particular, has risen in popularity among commercial banks in recent years, highlighted by Royal Bank of Canada's 2013 acquisition of Ally Financial's automotive financing division.
Given the solid performance of Canada's economy during and after the global financial crisis, consumers have been willing to consistently increase their debt as a proportion of disposable income over the five-year period. Consequently, this segment's share of revenue has increased slightly from 2010 to 2015... purchase to read more