Riz’s Rotman Blog

JK asked the following on my previous post: 

So I’m wondering, how has the subprime and credit crunch affected Canada, the employment in the banking sector.

Especially for a foreigner like me who wants to go to Rotman for an MBA and break it into the finance and banking industry in Toronto.

Since I’m not into the banking side of things at Rotman I asked someone I knew what they thought and they gave me this (well thought out) response:

While the impact of the credit crunch on the Canadian economy has not been as extremem in the US, the US is still Canada’s largest trade partner and, as such, the country’s financial institutions are hurt by the cooling of the US market (as well as all that subprime debt they’ve got sitting on their balance sheets!) While Canadian financial institutions (read: banks, money managers, private equity, etc) are still hiring, the numbers they are hiring reflect demand for services in the market so this year has seen a definite cooling down in numbers. The bad news it that there is a lull; however, the good news is that markets are usually cyclical and by 2010 or so (when you may be looking into getting a full-time job), the economy will likely be on an upswing and there will be a need to make up for years of slower higher to meet increased demand for services. Hope this helps.

 So there it is. Let me know if you have any other questions. 

This entry was posted on Thursday, March 13th, 2008 at 10:17 am and is filed under Academic. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.