The slow growth, high volatility and continued uncertainty felt in the wake of the financial crisis has become the new normal, and Scotiabank chief executive Rick Waugh says that isn’t going to change any time soon.
And while the financial sector as a whole has shouldered much of the blame for the financial crisis over the past several years, Waugh said Tuesday the industry doesn’t deserve all of the criticism.
“Fundamental failures in risk management by some financial institutions were evident, but as the G20 pointed out, there were also ‘major failures of regulation and supervision,’ as well as government policies,” Waugh told a business audience in Toronto.
The head of Canada’s most international bank said the bank and the industry needs to rebuild the trust it lost during the crisis and focus on customers.
“Huge progress has been made by financial institutions to correct the mistakes of the past and build a stronger, safer and more resilient global financial system that supports and drives economic growth,” Waugh said.
“There is still a lot of work to be done, which is why we’re focused on keeping the momentum going, and working to make things better.”
Last month, Scotiabank signed a deal to scoop up ING Bank of Canada from its Dutch parent company in a $3.13-billion deal.
Scotiabank has said the deal to buy the no-fee online banker will add “modestly” to its earnings within the first year.
Scotiabank has recently been making a series of international acquisitions as it diversifies its revenue base away from the Canadian market.
The Canadian ING business was established in 1997, attracting customers with its promise of no-fee banking.
Clients manage savings and chequing accounts online or over the phone as well as take out mortgages, or invest in mutual funds – but withdrawals and deposits are done at various ATM locations.