I'm sure these bank CEOs have some hard data to back their talk up. Still, it is leaving a really bad taste in my mouth if that's what the CIBC dude really thinks:
https://www.vancouverisawesome.com/n...owdown-6350457
Quote:
A pullback in the economy would mean more pressure on consumers, but shouldn't affect bank finances as much thanks to the still heighted cash reserves of borrowers and the ability to divert spending, said CIBC chief executive Victor Dodig.
"This is not a bank credit issue. This is an issue of consumer lifestyle. More money will have to go from discretionary spending to interest expense" he said.
CIBC is aiming to keep its capital ratio at around 11.5 per cent, he said, which is above the minimum set by the Office of the Superintendent of Financial Institutions, but below the 12 per cent maximum the regulator could potentially raise it to.
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FWIW, this Dodig guy is raking in $12M/yr from CIBC, so of course it is easy for him to say what he said.