Canadian banks to benefit from rising US interest rates

first_imgTORONTO – Canadian banks are expected to benefit from rising U-S interest rates and fewer bad loans in the oil patch as they start reporting their latest quarterly results this week.But analysts say worries about the housing market remain a key concern.Meny Grauman, an analyst with Cormark Securities, says that even if results are good, people may dismiss them as being quote — “backward-looking” because of fears about the Canadian mortgage market.Ratings agency Moody’s downgraded the credit ratings for Canada’s big banks earlier this month, in part due to concerns that high house prices have left lenders vulnerable to potential losses.Since Home Capital had to secure an emergency 2-billion line of credit after savers started pulling out their deposits in recent weeks, some observers are worried about broader implications.But a C-I-B-C analyst says concerns that Home Capital is the so-called canary-in-the-coal-mine are overblown.The Bank of Montreal will kick off the earnings parade on Wednesday, followed by Royal Bank, T-D Bank and C-I-B-C on Thursday.last_img read more