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Smaller regional banks such as Canadian Western Bank and Laurentian Bank of Canada also posted solid results.
Smaller regional banks such as Canadian Western Bank and Laurentian Bank of Canada also posted solid results.
(TODD KOROL/REUTERS)

The banking industry’s ‘calm before the storm’

For more than a year, the analysts who cover Canadian banks have predicted an earnings slowdown. Household credit is sky high, families can’t take on much more debt, and the spreads that the banks earn from lending money over rock-bottom interest rates fell fast.

But the slowdown never came. And so far this quarter, the banks keep pulling rabbits out of their hats.