23/08/2026
Financial Post's Barbara Shecter talks about the top stories of the year in the financial sector:
Two major trends took hold in the Canadian banking sector in 2016.
At the beginning of the year, and persisting as the banks reported each financial quarter, investors were watching intently to see how the lenders would deal with the impact of low oil prices on their loans books and in their capital markets divisions.
Bank executives urged calm, even as the price of oil appeared poised to stay “low for long,” and provisions for credit losses rose. By the end of the year, the oil-related concerns began to wane, as the banks continued to report profit growth for the most part.
Even RBC, which saw a two per cent decline in net income in the fourth quarter, managed to boost full-year profits by four per cent to nearly $10.5 billion.
The past year was also characterized by more partnerships between the banks and financial technology, or fintech, firms. The fintechs were initially viewed as competitors for customers who wanted to do more of their banking services – including borrowing, paying, and trading -- online.
But, over the past twelve months, co-operation between the big banks and fintechs included Scotiabank teaming up with Atlanta-based fintech lender Kabbage to offer small business loans to the Canadian bank’s clients in Canada and Mexico.
Also last year, Scotia and CIBC deepened their funding relationship with Montreal-based business lender Thinking Capital, and CIBC joined forces with consumer lender Borrowell.
