04:25:43 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Royal Bank of Canada
Symbol RY
Shares Issued 1,485,042,004
Close 2016-01-05 C$ 72.82
Market Cap C$ 108,140,758,731
Recent Sedar Documents

Globe says RBC passes cost of borrowing onto consumers

2016-01-07 07:42 ET - In the News

The Globe and Mail reports in its Thursday edition that the banks are seeing their lending costs rise, and they are starting to pass along those expenses. The Globe's David Berman writes that Royal Bank of Canada announced plans this week to raise its special discounted mortgage rates by 10 to 15 basis points, effective Friday. RBC left alone its prime rate and posted mortgage rates. RBC is responding to what RateSpy calls an "inhospitable lending environment" that is being shaped by rising global financial risks, additional pressure on bank profits and tighter regulations. Bank-issued preferred shares illustrate just how much this environment has been changing. TD is issuing $700-million of the debt-like financial instruments with a strong yield of 5.5 per cent. RBC, BMO and Scotia have recently issued similarly enticing preferred shares to bolster their regulatory capital. The cost to the banks for issuing preferred shares has essentially doubled over the past year. That is because investors have demanded a greater reward to offset the risk of falling interest rates and the fact that newly issued preferred shares are non-viable contingent capital: They convert to common shares if the bank nears failure.

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