TORONTO – Canadian bank CEOs say they see the risks around mortgage renewals easing, while they prepare for rising risks around tariffs and political uncertainty.
RBC chief executive Dave McKay, speaking at a CEO conference hosted by the bank, says that while many Canadians are still struggling financially, the uncertainties around borrowers making mortgage payments and managing renewals have come off significantly.
He says many clients will actually be renewing at lower rates this year after the Bank of Canada started cutting rates last June with more declines expected in the months ahead.
However, McKay says he’s disappointed to hear the intensifying rhetoric around tariffs in recent days and the bank is preparing for a range of scenarios.
The worry comes as incoming U.S. president Donald Trump has threatened to impose a 25 per cent tariff on Canadian and Mexican imports over what he says is concerns around border security.
CIBC chief executive Victor Dodig says tariffs won’t be helpful for either country, but the bank is ready for what comes.
This report by The Canadian Press was first published Jan. 7, 2025.
Companies in this story: (TSX:RY; TSX:CM)
