Canadian Banks See Surge in Equity Trading Volumes, Raising Systemic Risk Concerns

Toronto, ON – Equity trading volumes at Canada’s largest banks experienced a significant surge in 2025, becoming the fastest-growing systemic risk indicator, according to a new report. The increase, coupled with similar growth at Singaporean lenders, signals a potential shift in the global financial landscape and warrants increased monitoring.

Equity Trading Volume Rises to Record High

Across five Canadian and three Singaporean banks, the indicator rose 16.8% to €16.6 trillion ($19.2 trillion) by the end of 2025 – the highest level recorded since the metric was first introduced in 2021. Risk.net reported the findings, highlighting the growing concentration of risk within these institutions.

Canadian Lending Landscape: A Broad Overview

As of Q4 2025, Canadian banks, credit unions, and mortgage finance companies (MFCs) collectively held $5.84 trillion in loans. The “Huge 5” banks – RBC, TD, Scotiabank, BMO, and CIBC – dominate the market, controlling nearly 70% of all loans. Including Desjardins, the “Big 7” account for close to 80% of the Canadian lending market. WOWA.ca provides a detailed breakdown of the loan portfolios.

Key Loan Portfolio Statistics (Q4 2025)

• RBC: $1,042.4 billion
• TD: $983.7 billion
• Scotiabank: $779.5 billion (including Tangerine)
• BMO: $677.2 billion
• CIBC: $589.5 billion
• Desjardins: $312.3 billion
• National Bank: $302.6 billion

Residential Lending Dominates Canadian Portfolios

Residential mortgages and Home Equity Lines of Credit (HELOCs) represent 45% of all loans issued globally by Canadian lenders. This concentration in the housing market underscores the sensitivity of the Canadian financial system to fluctuations in real estate values. WOWA.ca

Real Estate Lending Trends

The Canadian Real Estate Lenders’ Report 2025, based on a survey of 37 domestic and foreign lenders managing over $200 billion in commercial real estate loans, provides insights into lending expectations, and criteria. CBRE Canada conducted the survey between December 10, 2024, and January 20, 2025.

Implications and Future Outlook

The surge in equity trading volumes, combined with the significant concentration of loans within a few major Canadian banks, presents a potential systemic risk. Increased monitoring and prudent risk management practices will be crucial to maintaining the stability of the Canadian financial system. Further analysis of the CBRE report and ongoing tracking of equity trading activity will be essential for investors and policymakers alike.