Sluggish Canadian Banks Face Stock Sales Over Capital Rules
- RBC may raise equity as it also seeks to close deal: analysts
- 2023 equity issuance through July down 54% from year earlier
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With economic storm clouds gathering, Canada’s bank regulator is considering stricter capital requirements that some analysts say have the potential to force Royal Bank of Canada, the nation’s biggest lender, to sell equity.
The banks, which make up the largest sector weighting on the S&P/TSX Composite Index, have dropped 4.6% this year, compared with the 4.3% advance in the broader market as concerns rise about a downturn in the country’s housing market and as quarterly results were largely a disappointment.