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Market Research Report

Retail Banking in Canada: Coronavirus (COVID-19) Sector Impact

Published by GlobalData Product code 939318
Published Content info 17 Pages
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Retail Banking in Canada: Coronavirus (COVID-19) Sector Impact
Published: May 19, 2020 Content info: 17 Pages

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with key markets across the world losing 20-50% of their value for the year to date. Many economists and institutions have cut their forecasts, with consensus global GDP growth currently at 2.6% for 2020, and many experts predicting the potential onset of recessionary environments.

A similar trend is expected in Canada, as economic growth in the country is expected to have dipped in the first quarter of 2020 and will decelerate further if the disease is not controlled at the earliest possible opportunity. The decline will have an adverse impact on all sectors, including banking and payments.

This report focuses on the impact of the coronavirus outbreak on the economy and the retail banking industry in Canada. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat coronavirus.


  • Like most countries across the world, Canada is on track for a recession as COVID-19 is having a major impact on the local economy. Canadian banks could see a near-term downside to profitability.
  • Net interest margins will remain low and could be compressed further by rate changes. Fee income will fall, driven by decreased retail spending and non-performing loan ratios will increase, particularly across SMEs. However, the central bank's announcement of an automatic six-month loan payment deferral for existing loans (including mortgages) will relieve some of the burden from SMEs and individuals affected by the COVID-19 outbreak.
  • These measures will also help mitigate the negative impact of defaults in the short term. Overall, the pandemic will be a tough but temporary blow to Canada's banking sector.

Reasons to Buy

  • Make strategic decisions using top-level revised forecast data on the Canadian retail lending and deposit industry.
  • Understand the key market trends, challenges, and opportunities in the Canadian retail lending and deposit industry.
  • Receive a comprehensive insight into the total consumer loans in Canada, including mortgages, personal and credit card loans as well as retail deposits balances.
Table of Contents
Product Code: GDFS0411CI

Table of Contents

  • COVID-19 Update
  • Impact Assessment
  • Retail Deposits
  • Total Consumer Loans
  • Mortgage Loans
  • Credit Card Loans
  • Other Consumer Loans


  • Supplementary Data
  • Definitions
  • Methodology
  • About GlobalData
  • Contacts
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