Article content continued

For starters, the current crisis is not confined to just the financial sector. Basically every industry is being affected in some way, from workers trying to keep a safe distance to companies suddenly forced to close their doors and lay off employees because there’s no money coming in.

“It’s a different crisis than 2008,” Canadian Imperial Bank of Commerce CEO Victor Dodig concurred, in an interview with the Post on Wednesday. “Revenue and income has disappeared for many.”

Canada’s big banks are uniquely positioned as observers of the economic effects of the pandemic, given their lines of sight into consumer borrowing and spending. Moreover, the federal government has been enlisting lenders to help with the response to the crisis, and Ottawa has prodded banks to cut customers some slack. The banks have responded by allowing for hundreds of thousands of deferrals of loan payments.

Yet even with the help, and even though the exact extent of the damage remains difficult to predict at this point, the economy appears headed for a recession.

“Our national priority must be to help companies remain solvent and people employed,” McKay said during the shareholder meeting. “We need to move with urgency, in days and weeks, not months. This will keep our economy primed, and help speed up the recovery once the health crisis is in check.”

We need to move with urgency, in days and weeks, not months Dave McKay, CEO, RBC

Tens of billions of dollars in support for consumers and businesses is already being rolled out by the government, such as the $73-billion wage-subsidy program and the $2,000-a-month Canada Emergency Response Benefit. Banks have also been working with the federal government on setting up the new Canada Emergency Business Account, which is to provide interest-free loans of up to $40,000 to small businesses and not-for-profits. Enrolment for that program will begin Thursday and funds will flow soon after, the banks announced Wednesday evening.