TORONTO (CU)_The economic downturn brought about by the COVID-19 pandemic has had severe effects on several industries across the globe, including the financial sector. Nevertheless, according to a top investment executive in Canada, the country’s banking industry has a strong track record of coping through challenging times and the pandemic has been no exception. “The strength of the business is such that they have been able to both survive and ultimately thrive through those downturns,” James Black, vice-president of Canadian equities at Toronto-based investment management firm Beutel Goodman Investment Counsel, said, adding that the financial sector of Canada has withstood protracted financial droughts and remained resilient through lengthy periods of loan losses.
He further noted that the financial sector of the North American nation was strengthened by new regulations that were launched following the global recession between 2008 and 2009, which proved to be of great value amid the challenges experienced since the beginning of last year. “A very good lesson coming out of the craziness of the last 18 months has been the resiliency of the institutions and the stringency of the capital requirements,” Black said. “We view the financial system overall as being in good health. It’s a stable regulatory environment.”
Nevertheless, he pointed out that there could be several challenges…
