Canada’s “Big 6” are in good shape though, according to a senior wealth advisor and analyst at ScotiaMcLeod.
The banks will be announcing their latest quarterly financial results next week but Andrew Pyle, speaking to BNN, was optimistic.
“For the most part, most of the sectors look credit-decent from a bank point of view," he said. "I don’t think we’re going to see a tremendous amount of downside on the banks.”
Despite this, he says that the energy sector does pose a potential risk to the banks and mortgages in Alberta could be affected. Falling demand for mortgages could also hit net profits if unemployment rises and interest rates increase.
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As the global economy looks shaky there are fears about the strength of banks and mortgage lenders to ride out any storm that may blow our way.