And bank capital matters for credit provision and for financial stability, as low bank capital means high leverage. The short-term impact partly stems from one-off capital gains on the outstanding fixedincome portfolio of a bank. When rates are falling, the value of fixed-income securities on a bank’s balance sheet goes up, leading to higher profits.
It’s a pleasure to be with you as you reflect on the challenges facing the North American transport and logistics industries in the current global economic environment. Your industries are inextricably linked with the wider economy: they enable other economic activity by connecting producers with their suppliers and markets elsewhere in Canada and around the world.