Source: The Canadian Press

Royal Bank of Canada chief executive Gord Nixon says growth in Canada’s banking industry will be harder achieve in the years ahead as the global economy remains fragile and capital becomes harder to obtain.

The head of Canada’s largest bank (TSX:RY) delivered his industry outlook in a speech for Royal Bank’s investor and analyst day in Toronto.

Nixon said the past three years have been transformational for global financial services companies, but the next several years will be defined by further challenges.

He noted that banks will have to contend with a fragile global economy that may continue to be weak “for an extended period of time.”

He also said banking regulations will undergo a complex overhaul, affecting global capital requirements.

RBC’s CEO told investors that he believes the changes will give the stronger Canadian banks an opportunity to strengthen their position while weaker industry players will have it harder.