I view core banking and retail as good things. Steady and slow is fine with me (no boom and bust). Besides, banking in Canada is an oligopoly so the industry should always be profitable.Regulators are coming down with tightening policy and discourage banks from investing in high risk assets that generate high return. Therefore, they are resorted to focus on core banking and their retail business
Right now there is a large spread between the short and long interest rate. That spells profit for the banks.I would not overweight my portfolio with in banks as their profitability level will not be as much gravy as in the past. Regulators are coming down with tightening policy and discourage banks from investing in high risk assets that generate high return. Therefore, they are resorted to focus on core banking and their retail business which is highly competitive. All in all, their growth potential will not be as attractive as the pre-lehman days
Ever wonder just why banks in general are "reliable cash generators?"It appears that profits at the Big 6 Canadian banks are almost back to their pre-recession level. These banks are reliable cash generators.