Industry Analysis & Industry Trends
Despite the global financial crisis, the Commercial Banking industry in Canada fared relatively well over the five years to 2014, primarily due to its sound capital requirements and distance from the subprime mortgage crisis in the United States. In general, aggregate increases in domestic household credit; continued proliferation of mobile and online lending; and the introduction of ancillary services have benefited the industry's performance in recent years. Additionally, the industry is forecast to gain momentum over the five years to 2019, largely due to rising interest rates, improving consumer sentiment and rising corporate profit... purchase to read more
Industry Report - Industry Investment Chapter
The Commercial Banking industry operates with a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.11 to capital investment. The industry's level of capital intensity has increased slightly over the five-year period, as the industry allocated $0.09 in capital expenditure per dollar in wages in 2009. Industry operators invest heavily in their distribution networks, which typically include brick-and-mortar branches, ATMs and an online presence. Moreover, the industry's largest banks continue to invest in mobile transaction platforms, as commercial banks compete extensively on the basis of banking convenience.
Yet, the industry still relies more heavily on labour for each of its product and service offerings... purchase to read more