Monday, October 20th11.6°C
23836
22924

RBC says housing market is solid

Royal Bank CEO Gord Nixon says a slowdown in the Canadian real estate market is affecting mortgage lending but the softness is not a crisis since he expects the country's housing market will remain solid.

The head of Canada's largest bank told a RBC banking conference Tuesday that he expects the bank's consumer lending growth will slow to mid single digits but it should see an increase in commercial loans.

Nixon said the bank has relatively small exposure to the condominium market and has requirements that protect it from troubled lenders.

However, he said there would be an impact on the broader economy from a significant decline in the real estate market.

Faced with a continuing low margin environment, he said the bank will continue to focus on containing costs.

While he's confident with most parts of the bank's businesses, Nixon said it will focus on improving its Caribbean operations which he said have been underperforming.

Bank of Montreal CEO Bill Downe told the conference the bank deliberately curtailed its exposure to the Canadian condo construction market after watching some of the problems surface in the United States in 2007 and 2008.

Downe expects the overall U.S. housing market will show considerable strength this spring which will stimulate commercial loans.

After a strong fourth quarter with U.S. mortgages, he's anticipating that the American economy will be much stronger this year.

The Canadian Press


Read more Business News

23434


Recent Trending




Today's Market
S&P TSX14301.42+73.74
S&P CDNX811.151.02
DJIA16353.31-27.10
Nasdaq4293.994+35.556
S&P 5001896.11+9.35
CDN Dollar0.8864-0.0001
Gold1244.80+5.80
Oil81.45-0.17
Lumber330.80-3.80
Natural Gas3.671-0.095

 
Okanagan Companies
Pacific Safety0.10-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.110.00
Cantex0.055-0.025
Anavex Life Sciences0.1995+0.0095
Metalex Ventures0.05+0.005
Russel Metals32.12-0.23
Copper Mountain Mining1.95+0.01
Colorado Resources0.15+0.005
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.46+0.01

 





FEATURED Property
20168831586 Marina Way
3 bedrooms 3 baths
$749,999
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_



23803




Member of BC Press Council


22496