RY has been one of the fastest-growing Canadian banks, and it has survived several recessions in the past. Although there is the potential for a recession to arise as a result of high interest rates, we would be very comfortable with holding any of the large Canadian banks for the long-term. While there are concerns about a potential recession, a lot of these fears have been priced into the Canadian banks, as we have seen their valuations contract as a result of weakening capital markets and reduced lending.
The large Canadian banks will generally grow with the economy and the capital markets. As the Canadian real estate market grows and consumers and businesses take on additional debt to fund real estate, property, investments, etc., the large banks will benefit and see their top and bottom lines grow. Most of the Canadian banks have also been expanding into other geographies, which has helped to stimulate growth.