Economic war and income inequality concern Canadian bank CEOs

At the RBC CEO Conference in Toronto, Canadian bank leaders said national security and rising income inequality are two of the biggest risks, and several executives noted increased investment in AI and technology to reduce costs.

Canadian bank CEOs spoke at the RBC CEO Conference in Toronto about the risks shaping the economy and policy. They identified national security and rising income inequality as major concerns. National Bank CEO Laurent Ferreira described the global environment as an "economic war" and urged faster national planning on reindustrialization and defence. Several executives also described ongoing investments in artificial intelligence and technology aimed at lowering costs and improving efficiency. Key points: - Bank CEOs at the conference cited national security and rising income inequality among the top risks. - Laurent Ferreira characterized current global tensions as an "economic war" and called for faster nation-building and defence focus. - Executives reported that consumers are generally meeting debt payments and that spending has been supported in part by reduced home buying activity. - Several banks said they are increasing investment in AI and other technologies to cut costs and improve operational efficiency. Summary: CEOs connected growing income disparity and geopolitical tensions to shifting political and economic priorities and emphasized the importance of advancing national projects. They highlighted technology and AI as tools for cost reduction while noting consumer spending remains supported partly by lower housing activity. Executives also pointed out that a formal review of the Canada-United States-Mexico Agreement is expected mid-year and cautioned against assuming a quick resolution.