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RBC CEO David McKay, pictured at the bank’s annual meeting in 2017, says Canada will need $1.8-trillion in capital investment to finance major projects.Frank Gunn/The Canadian Press
Royal Bank of Canada RY-T chief executive officer Dave McKay said the lender plans to deploy up to $1-billion in coming years to bolster investments in Canadian companies as the country attempts to redraw trade routes.
To finance Canada’s major projects, the country will need $1.8-trillion in capital investment over the next decade, Mr. McKay said at RBC’s annual meeting in Toronto on Thursday. Canada’s largest bank intends to launch a growth fund and expand its financing of emerging sectors deemed critical for economic growth.
“The vast majority of this capital must come from the private sector. Government simply cannot – and should not – fund it alone,” Mr. McKay said.
“We’re planning to bring more of our lending, underwriting and advisory services to help close Canada’s funding gap and support the major projects that will build the country’s future. But that future is only possible if Canadian innovators and their ideas stay in Canada.”
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The bank expects to hire in key roles and expand products and services in sectors considered of national importance, including infrastructure and finance capabilities – including focusing on partnerships in the North and with Indigenous groups – as well as defence companies and Canadian businesses looking to expand globally.
“Across the globe, countries are building competitive advantages and diversifying their economies by making investments in infrastructure, streamlining regulations and finding new ways to attract capital,” Mr. McKay said.
“In a world defined by competition, Canada can’t rely on past advantages or legacy strengths alone. To succeed, the country must make deliberate long-term choices and investments.”
