Trump election win could benefit Canadian banks and insurers, analysts say
Analysts suggest that a Donald Trump victory in the upcoming U.S. election could benefit Canadian banks and insurers. Trump’s policies may lead to less regulatory scrutiny, lower corporate taxes, and an inflationary environment, which could enhance profits.
In contrast, a win for Democratic candidate Kamala Harris is expected to maintain stricter regulations and increase corporate taxes. Under President Biden, new regulations were introduced to stabilize the banking sector, which could limit growth opportunities for Canadian financial institutions in the U.S.
Canadian banks like Toronto-Dominion Bank and Bank of Montreal, which have significant U.S. operations, are seen as likely beneficiaries of a Trump presidency. Analysts believe that lower taxes and a more favorable regulatory environment could boost their profitability and market activities.