HSBC has been on a divestment journey since it began a strategic review in 2019. In 2021, it started selling 90 branches to Citizens Financial Group and Cathay General Bancorp as the bank exited the US retail market. It also sold its France-based retail banking business to private equity firm Cerberus Capital Management.

And now, Canada’s Competition Bureau has given the green light for the Royal Bank of Canada’s CAD$13.5 billion (about US$10 billion) offer to buy HSBC’s domestic unit. In addition, RBC will acquire all the preferred shares and the outstanding subordinated debt issued by HSBC Canada and held by the HSBC Group for approximately CAD$1.1 billion and CAD$1 billion, respectively.

The sale includes HSBC Bank Canada’s commercial, personal, investment and market services businesses. The bank is the country’s seventh-largest by assets, according to Refinitiv data, and the biggest international player in a market dominated by domestic incumbents.

“It’s a unique, once-in-a-generation opportunity to leverage all the investments we’ve already made in building a world-class retail and commercial bank,” noted RBC’s chief executive Dave McKay on an analyst call.

According to HSBC’s strategy initiative, the divestments involve “accelerating the shift of capital to areas, primarily Asia and wealth, that have demonstrated the highest returns and where we have [a] sustainable advantage through scale.”

The RBC deal is expected to close in the first quarter of 2024 and will include about 130 branches, more than 780,000 customers, and about CAD$134 billion in assets. Interestingly, the Canadian business has been profitable, unlike those in the US and France, which were money-losing operations.

HSBC chief executive Noel Quinn said the decision to sell the business to RBC followed a thorough review of its “strategic fit” within the wider HSBC portfolio. The bank concluded it held a relatively small share of the Canadian market and had greater opportunities for growth in other countries.

“Our Group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders,” Quinn said in a prepared statement.

If a pandemic, war in Ukraine, supply chain disruptions and overall market turmoil has shown the regional banking world anything, it’s that a connection to a customer base and customized solutions are key differentiators for growth. “Banking customers are expecting more from their banks,” comments Deloitte in announcing its 2023 Banking and Capital Markets Outlook. “They are clamoring for a superior cross-channel experience and hands-on guidance during challenging times. These heightened demands will require banks to go beyond a product lens and create customer experiences that are data-driven, consistent across channels and complete with personalized advice.” The 2023 award winners are taking that message to heart.

Consultation and customization are key drivers of Fifth Third Private Bank’s success and dedication to clients. In 2021, the private bank’s assets under management reached $38 billion, and year-over-year loan growth was 4%. Deposits grew by that same number. But last year’s creation of Fifth Third’s Business Transition Advisory Team (BTAT), a Private Bank team dedicated solely to preparing business owners financially and personally for their business transitions, really expanded the reach and services to a greater segment of the market. BTAT advisers work with the Private Bank, Commercial Bank and Fifth Third’s other lines of business to meet clients’ needs.

“This dedication is manifested in our client relationships,” says Kris Garrett, group regional president and head of Wealth and Asset Management at Fifth Third Bank. “Our relationships are deeper and more meaningful because of our investment in time, insight and customized wealth strategies. We understand what’s important to clients, uncover risks and spark critical conversations. It’s all part of the ongoing, consultative value of a relationship with Fifth Third Private Bank.”

Digital banking is also in Fifth Third’s DNA, as clients who use Fifth Third Private Bank’s digital Life360 platform have a stronger overall relationship with the bank. These Private Bank clients have higher loyalty scores and Net Promoter scores, and rate higher in the category of “Extremely Satisfied.”

A merger between Old National Bancorp and First Midwest Bancorp has created the powerhouse under the banner of Old National. Combined assets are $46 billion, with $34 billion of AUM. Founded on community banking principles, Old National has also been recognized as a World’s Most Ethical Company by the Ethisphere Institute for 11 consecutive years.

Old National has recently expanded into the Nashville, Tennessee area with the hiring of seven wealth management professionals. The experienced team, with an average tenure of over 20 years in wealth/investment services, will be led by Steve Cook, who will serve as market president. This group will lead and operate a new wealth management office under the 1834 brand, the new high net worth brand of the Old National Wealth Group.

Fieldpoint Private, having taken this same award last year, is always innovating. The bank is making investments to increase capacity to serve entrepreneurs and their families, from New England to Florida. This has resulted in bank asset growth of nearly 40% in the past year and Fieldpoint’s status in the top 5% of fastest-growing banks in the US on an organic, non-M&A basis. Also, a new business model has been introduced to serve as a boutique private bank serving the independent-adviser community and its clients. With knowledge of local markets and a new business model, Fieldpoint can roll out new technologies giving advisers a real-time view of client accounts and transactions. This boutique private banking solution for approximately 10,000 independent investment advisers and their clients in the US will represent at least $5 trillion in assets, with a significant coefficient of bank loan and deposit assets.

Also, in May 2022, Fieldpoint announced the launch of a sophisticated full-service trust company, Fieldpoint Private Trust, in response to widespread demand from clients, advisers, bankers and others. Executive chairman Tim Tully said, “People are looking for a new kind of trust company, where investment advice is independent rather than self-serving, and where wealth advisers and their long-term trusted client relationships are placed at the center. It’s also vital for an effective trust company to be domiciled in a location that empowers clients to benefit from the most progressive and advantageous trust laws.”

Synovus Financial has approximately $57 billion in AUM and operates 270 branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Its strategy is to understand the client picture as a whole and build a team around that client and their goals. A single point of access also helps Synovus home in on the needs of wealthy clients and strategies to grow wealth.  Synovus’ Trust and Family Office offers clients estate planning and settlement, asset management and trust administration. It has a new online platform that allows clients to view account information, including performance, projected income and customizable account groupings. “We demonstrated ongoing progress this quarter as we continue to execute our strategic growth plan,” says Synovus President and CEO Kevin Blair. “Our strong third-quarter performance is a result of increased productivity; deepened, more profitable client relationships; and prudent expense management.”

Along with its purchase of BBVA, PNC Private Bank has taken a long, hard look at its more than 250 investment advisers. In June, the bank adopted a more regionally focused structure that reflects its national expansion and growth while aligning with its “Main Street Bank” model. The idea is to focus on local organization of its businesses. “Since growing our footprint in the Southwest region of the US, PNC Bank as a whole has worked diligently and expeditiously to meet the needs of our customers and clients there,” says Don Heberle, head of PNC Private Bank. “The PNC Private Bank team in the Southwest understands the unique nuances of serving clients in the region while at the same time staying true to the core of our approach: helping clients achieve the ‘why’ behind their wealth.” The bank also created a new position, head of US markets, whose responsibility is to look after sales and client experiences throughout the country. PNC now also serves seven regions, up from its previous five.

City National Bank, headquartered in Southern California, with most of its branches located in Los Angeles metro or the Bay Area, also has locations in Washington, DC, New York City and and four other cities. City National Bank’s acquisition by Royal Bank of Canada in 2015 enables it to offer “big bank capabilities” to its clients. City National Bank had $91.2 billion in assets as of July, $79 billion in deposits, $59.1 billion in AUM and $83 billion in assets under administration. The bank opened seven branches in Los Angeles in 2021, during the height of the pandemic. The branch expansions are part of a larger growth spurt underway at the bank—LA County’s largest in assets. City National also expanded its private banking team to advise wealthy customers in Philadelphia and Morristown, New Jersey; and it appointed a former Wells Fargo executive, Abel Montañez, to head up the private banking line.

The last five years in US private banking have seen a 4.3% growth rate, according to market research firm IBISWorld, with a dynamic shaped by the pandemic. Unprecedented government stimulus packages, ultralow interest rates, increased liquidity and soaring markets maintained economic resilience through 2021. According to Capgemini’s World Wealth Report 2022, “North America retained its commanding lead for high net worth individual (HNWI) population growth (13.2%) and wealth (13.8%).” The report points out that the global population of HNWIs expanded by 1.7 million, or 7.8%, in 2021, with wealth swelling by 8%, or $6.4 trillion.

The tech sector is a leading engine of wealth growth; and this past year, J.P. Morgan (JPM), which also took the top spot last year, has been on a fintech tear. “Our recent fintech acquisitions and partnerships are catalysts in helping us deliver next generation digital, personalization and [environmental, social and governance] solutions to clients,” says Mary Callahan Erdoes, CEO of J.P. Morgan Asset and Wealth Management (AWM).

Recent acquisitions include 55ip, a fintech company with capabilities that enable financial advisers to deliver tax-smart investment strategies at scale; OpenInvest, a fintech company that helps financial professionals customize and report on values-based investments with more than 20 proprietary values-based causes; and Global Shares, a cloud-based provider of share management software with an expansive client base and nearly $200 billion in assets under administration. JPM also invested in talent, hiring 377 new analysts and 162 new client advisers and offering more than 280,000 hours of training.

According to Goldman Sachs’ Sustainability Report 2021, the bank is not quite halfway to its 10-year goal, set in 2019, of $750 billion in sustainable finance activity—with approximately $300 billion achieved so far, including $167 billion in climate transition and $50 billion in inclusive growth.

The report also notes that 1,800 transactions were reviewed in 2021 for environmental and social risk via the bank’s Sustainability Issuance Framework, created early last year, which outlines a program for green, social or sustainability issuances (including bonds, notes, certificates, warrants, deposits and certificates of deposit). Global environmental equity-focused strategies topped $1 billion in assets under supervision in 2021.

Abigail Pohlman, global head of the private wealth division’s Sustainable Solutions Group, told Barron’s in July that Goldman targets thematic investment opportunities in nine areas: five related to climate transition, including clean energy and sustainable transport; and four related to inclusive growth, including financial inclusion and access to health care.

The total technology budget at Bank of America (BofA) is $10.7 billion, with $3.6 billion annually dedicated to new initiatives. As of the second quarter of 2022, 86% of Private Bank clients are digitally active, up from 83% the prior year. That includes 70% of Private Bank clients who utilize the bank’s mobile app, up 4% year-over-year. Enhancements over the last year have included a broad set of capabilities in one app, a new mobile search bar made smarter with artificially intelligent virtual assistant Erica, in-app trading, streamlined rewards, e-signature capabilities and client surveys.

“The private bank takes a high-touch and high-tech approach,” says Sydney Ivey, chief operating officer at Bank of America Private Bank. “We are continually innovating to provide our clients with the best experience.”

The world community has been keeping a close eye on Russia while the Kremlin has amassed troops on Ukraine’s borders and requested that NATO deny the former Soviet republic membership. The diplomatic escalation has led to high tension between the US and Russia.

In an unusual move, the US floated the idea to block Russia’s access to the SWIFT global interbank payments system. The move is akin to a UN sanction, but involves a trusted and politically neutral financial communication system used by 11,000 banking institutions in 200 countries. The only time Swift disengaged with a country was when the EU blacklisted Iranian banks in 2012.

At press time, US President Joseph Biden was considering the extreme measure to prevent any invasion of Ukraine. On December 7, he warned Russian President Vladimir Putin that the US and its allies would respond with strong economic and other measures in the event of military escalation, according to a video call summary issued by the White House. So far, Biden has not outwardly expressed the SWIFT option, although there are rumors and hints of something like a SWIFT disconnection.

Unlike Iran, Russia has a larger economy that would face greater disruption from such a ban. Any transition to another payment system would likely cause an economic contraction and send the ruble’s value downward.

Russia and other large economies like China have been developing alternative payment systems to blunt such effects. Russia began work on a platform in 2014, when it received similar threats. The resulting System for Transfer of Financial Messages has 400 member banks but is not as robust as Swift and does not operate all day, every day.

“We will survive, certainly, but I don’t think it will come to that,” Andrey Kostin, CEO of Russian bank VTB, told state television channel Rossiya 1. “It would be a very serious measure. ‘Unfriendly’ doesn’t do it justice.”

Anyone following this year’s COP26 UN climate change conference might have noticed that the Glasgow Climate Pact did not exactly align with the Paris Climate Agreement goal of capping the world temperature increase at 1.5 degrees Celsius.

An analysis by Climate Action Tracker released during the conference projects at least a 2.4°C increase based on countries’ latest targets.

However, the Glasgow Financial Alliance for Net Zero (GFANZ), launched in April 2021 by former Bank of England governor Mark Carney, believes the 1.5°C temperature target is still achievable based on commitments by its members. At COP26, the organization brought together more than 450 financial firms from 45 countries, representing financial sector net-zero commitments worth more than $130 trillion.

GFANZ is committed to a new initiative to decarbonize investments and pursue the so-called Race to Zero, which aims to halve global emissions by 2030. Member firms say they will take on a net-zero commitment and use science-based guidelines to reach net-zero emissions by 2050; cover all emission scopes, including 2030 interim target settings; and commit to transparent reporting and accounting in line with Race to Zero criteria.

More than 90 of the founding members of GFANZ—banks, insurers, pension funds, asset managers, export credit  agencies, stock exchanges, credit rating agencies, index providers and audit firms—say they are already delivering on setting short-term targets. Asset managers have published net-zero targets for 2030 or sooner.

Mark Carney, the UN special envoy for Climate Action and Finance and COP26 finance adviser to UK Prime Minister Boris Johnson, said, “The rapid and large-scale increase in capital commitment to net-zero, through GFANZ, makes the transition to a 1.5°C world possible. To seize this opportunity, companies must deliver robust transition plans and governments set predictable and credible policies.”

GFANZ workstreams include mobilizing private capital to emerging markets and developing countries, engaging industry to catalyze alignment between financial institutions and global industries, accelerating decarbonization in the real economy, creating sectorwide best practices for financial institutions to design credible net-zero transition plans, supporting the effective implementation of portfolio alignment and advocating public policy to help build a net-zero economy.

After organizing and failing to launch an initial public offering, office-space provider WeWork has gone public via a merger with special purpose acquisition company (SPAC), BowX Acquisition. Under the terms of the deal, Softbank—WeWork’s main backer—will retain a majority stake in the company and will honor a one-year lockup for its shares, according to reports.

SPACs are public shell companies designed to merge with or acquire private companies and make them public companies without going through an IPO process. A SPAC acquisition typically takes three to six months to complete, compared to an IPO’s 12- to 18-month period. Such benefits have led SPACs to generate $83 billion of investments in 2020 and another $100 billion in the first quarter of 2021.

“If you had told me at the beginning of the year that we would already exceed 2020 totals before the end of the first quarter, I would not have believed it. It’s been quite phenomenal, and there are no real signs of the momentum stopping meaningfully anytime soon,” Carlos Alvarez, head of permanent capital solutions at UBS Group, told Reuters earlier this spring.

“The public equity markets democratize access to capital for entrepreneurs and also democratize access to investment opportunities for investors,” said Nikolai Roussanov, a finance professor at the University of Pennsylvania’s Wharton School, during a Wharton Executive Education roundtable on SPACs. “There is also a sense that going public has become costlier for firms, both in terms of the monetary cost that the company founders bear and in terms of the time it takes to go public.”

Companies looking to raise capital while avoiding an IPO are also investigating direct listings, which allow a company to sell shares directly to investors via stock exchanges. Spotify, Slack and Squarespace all went public through direct listings.

The outlook for raising capital via SPACs and other non-IPO methods likely will remain strong for technology and other companies looking for alternate methods of financing.         

There is no shortage of financing and deal-making in equity capital markets moving into 2021. In fact, four out of the top five equity capital market sectors—technology, health care, finance and telecommunications—beat their 2019 numbers last year, according to Dealogic. Flows and projections going forward are strong; and in a year that witnessed change at its most disruptive, global investment banks, while feeling the pain of the Covid-19 pandemic, adapted well.

Global Finance’s 2021 Best Equity Investment Banks showcase accommodations that carried the sector through an unprecedented year and into 2021.

J.P. Morgan takes the top prize as the best investment bank for equities globally.  Vis Raghavan, JPM’s CEO for EMEA, noted in an interview in late September that the world was “awash in liquidity” despite pandemic needs, largely due to the long stretch of quantitative easing and stimulus. Going forward, he said “The key driver is going to be equitization. All those companies that have secured liquidity, they’re looking at the markets and thinking ‘should I grab equity when I can?’”

Goldman Sachs took the award as Best Equity Bank for North America. The investment bank powerhouse maintained its leading position in equities trading and underwriting throughout 2020 despite COVID-19’s impact on the global economy and ended on a solid second half.

Goldman Sachs began the year planning to cut $1.3 billion annually from operating costs for the next three years to improve its return-on-equity. The bank maintained its top position on Dealogic’s league table for initial public offering revenue earning for 2020 by generating $931 million via 84 deals that raised an aggregate of $13.87 billion. Among the IPOs that the bank underwrote, 31 were for special acquisition companies (SPACs), also known as “blank check companies,” designed to bring private companies public without resorting to a typical IPO.

The global winner in Frontier Markets, EFG Hermes, was also Africa’s standout equity player in 2020. Ali Khalpey, CEO of EFG Hermes Frontier, expects positive global macroeconomic recovery and commodity price improvement to continue to improve the environment for deals across Africa. “We continue to see strong interest from cross-border M&A [mergers and acquisitions] as well as ECM [equity capital market] activity picking up as markets continue their positive momentum,” he predicts.

According to EFG’s third-quarter report for 2020—the latest available—the investment banking division succeessfully concluded six transactions worth an aggregate value of $193 million, bringing the total number of equity, M&A and debt transactions it executed in the first three quarters of last year to 12, with a total value of $1.1 billion.

Best Equity Bank for Central & Eastern Europe goes to VTB Capital, which participated in Russia’s 2020 initial and secondary public offering boom, driven by an influx of retail and foreign private investors. VTB Capital topped Dealogic’s leaderboard for investment banks operating in the Russian equity capital markets based on transaction volume.

VTB Capital helped SovComflot, a maritime shipper specializing in the transport of petroleum and liquified natural gas, raise approximately $550 million as one of the joint global coordinators and bookrunners in early October 2020. The deal was one of the largest IPOs in the shipping sector since 2014 and the first of a Russian state company since 2013, according to Boris Kvasov, co-head of Equity Markets. The bank was also a key player for Aeroflot’s secondary offering that raised 80 billion rubles ($1.05 billion), and in Russian online retailer Ozon Holdings’ $990 million IPO.

BBVA, our global winner for Sustainable Financing, also took Best Equity Bank for Western Europe. The bank put significant effort into strengthening its corporate equities business through investments in technology and in-house capacity development, as well as partnering with European equity research and brokerage house Oddo BHF. In June, for example, the bank launched a web-based solution, called epricer, for structured equity and credit investments.

“BBVA has an ambitious growth plan for its equities franchise,” said Luisa Gómez Bravo, global head of BBVA Corporate & Investment Banking, in a company statement.

While IPO issuance was muted throughout 2020, primary share accelerated offerings and rights offerings drove volumes in EMEA-listed equity capital markets. Of these transactions, the largest was Cellnex Telecom’s 4 billion euro rights offering, in which BBVA acted as joint bookrunner. A staggering 99.45% take-up and excess demand led to the deal being more than 46 times oversubscribed. Major shareholders such as the Abu Dhabi Investment Authority and the Government of Singapore Investment Corporation committed at launch to subscribe in full for their entitlements, equivalent to 18.7% of Cellnex’s share capital. Shares in Cellnex traded above the subscription price throughout the marketing period with a 32% headroom to issue price when the rights trading period ended.

BBVA also acted as joint bookrunner in International Airlines Group’s 2.75 billion euro rights issue. Around 20% of the company’s share capital were Spanish and UK retail shareholders. Qatar Airways Group, the company’s main shareholder, committed to subscribe in full for its entitlements, equivalent to 25.1% of IAGs share capital. A strong appetite from shareholders and investors translated in a 100% acceptance of the total shares on offer.

BBVA acted as sole broker and agent bank in the 2.84 billion euro takeover bid launched by Swiss financial markets infrastructure operator, SIX Group over BME and helped to structure a sell-out mechanism. The transaction was finalized in September, once squeeze-out conditions were met.

In an extraordinary year, and despite widespread lockdowns, BBVA continued to offer clients a compelling combination of advice and execution. It is considered a leader in equity capital markets business, with Refinitiv ranking it second in its ECM League Tables as of Q3 2020.

Bradesco BBI is the champion in Latin America. Bradesco had a notable performance in the equity capital market segment in 2020. The bank acted in at least 18 transactions that, together, earned a total of $3 billion for its clients.

Among its major equity offerings was the landmark Ambipar IPO. Bradesco also conducted a follow-on round for Via Varejo—the country’s largest electronics and furniture retailer. Despite all the skepticism over retail at the start of the pandemic, the transaction achieved a volume of around $820 million. Another significant follow-on offering involved Rumo, the largest Brazilian transportation company, and brought in $1.2 billion.

Despite Alibaba’s postponement of the initial public offering (IPO) for its fintech affiliate Ant, China International Capital Corporation (CICC), which was slated as one of the main underwriters on the deal, pushed itself to the top of the Best Equity Bank ranking for the Asia Pacific region. China accounted for 24% of total volume transacted in calendar 2020 in the region, according to a recent statement by Michael Tse, Dealogic’s head of research, Asia Pacific, bolstering CICC’s position.

CICC listed its shares on the Shanghai Stock Exchange last year and is hoping to benefit from a government push to accelerate capital market reforms. Notable deals last year included assisting with the $258 million offering for Sino-Ocean Service and smart electric car maker NIO’s $2.65 billion follow-on offering.

First Abu Dhabi Bank takes the award for Best Equity Bank in the Middle East for the fourth year in a row. It has not been unaffected by Covid and the economic fallout from the pandemic, however. The United Arab Emirates’ (UAE’s) biggest lender posted a 16% drop in 2020 net profit on higher impairment charges as the twin health and economic crises hit the UAE.

First Abu Dhabi nevertheless claimed a 14% market share on $638 million in proceeds from two deals, according to Refinitiv’s Middle East and North Africa (MENA) ECM league table for 2020. The bank was joint bookrunner on the Abu Dhabi National Oil Company’s $1 billion institutional placement, the second-largest ECM issuance for the MENA region in 2020.

Moving forward, First Abu Dhabi says it is looking to further strengthen its ECM division through increased presence and new hires in Saudi Arabia, the region’s biggest market for IPOs.

Jane Fraser, Citibank’s new CEO, was handed a tricky matter in her first days on the job. The bank is appealing a February 16 ruling by US District Judge Jesse Furman in Manhattan on an attempt to recover about half a billion dollars it had accidentally sent to Revlon lenders last year. Citi had actually sent almost $900 million in error, but some lenders returned their portion.

The transfer was made to fulfill Citi’s responsibility as loan agent to Revlon; but the bank sent over the entire loan amount, which wasn’t due until 2023, rather than just the interest owed. Citi says it was human error and, in a court filing, noted that the person who made the error failed to manually select the correct system options after some of the loan had been paid out.

Furman ruled, however, that the lenders are not required to pay back the transfer, reasoning that such a mistake had never occurred before and that it would have been “borderline irrational” for them to assume that a powerhouse like Citi would have made it.

“We strongly disagree with this decision and intend to appeal,” a spokeswoman for the bank said in a statement. “We believe we are entitled to the funds and will continue to pursue a complete recovery of them.”

Unfortunately for Citi, the payments were an exact prepayment amount “to the penny,” the judge noted, something lenders would not necessarily have believed was a mistake. A temporary ban continues on the lenders’ using the money during the appeal process.

Citi has had its share of problems with regulators recently. The bank has been upgrading its internal controls and technology since it was fined $400 million last year for failures in enterprise-wide and compliance risk management and in its data governance and internal controls. Since then, Citi has been engaged in a data architecture and IT redesign to address the problems.

It’s likely financial institutions that act as loan agents will be watching Citi’s appeal closely, as it suggests a need for stricter controls for the industry going forward.

“The industry should figure out a way of dealing with these things even if this was a black swan event,” Furman said during the trial. “Whatever my ruling is in this case, I hope the world, the market, takes notice of what’s happened here and the uncertainties that have resulted.”

There are few positions in the Canadian government that Chrystia Freeland has not held—deputy prime minister and minister of intergovernmental affairs in Prime Minister Justin Trudeau’s cabinet; also trade minister. In August, she added finance minister to the roster after Bill Morneau stepped down in August amid a conflict-of-interest charity scandal.

Freeland, who as trade minister went toe-to-toe against the Trump administration in negotiations over a revamped Nafta trade deal (now known as USMCA), becomes the first woman to hold the finance post in Canada.

“It’s about time that we broke the glass ceiling,” Freeland said at her swearing-in. “One of the hallmarks of our government has been an explicitly and proudly feminist agenda.”

With a pandemic raging and the economy shut down, Freeland faces a tough landscape. Economic forecasts suggest that even by the end of 2021, the economy won’t have recovered to its level at the start of this year, and unemployment is expected to remain high.

The government estimates that 4 million people will claim a series of income supports totaling C$37 billion ($28 billion) in proposed spending. Federal spending has climbed quickly over the course of the pandemic. The deficit in Canada is C$343.2 billion and total federal gross debt is C$1.2 trillion, both record highs.

Following this most recent cabinet shuffle, Trudeau suspended Parliament until September 23, when a new Speech from the Throne will be read outlining the government’s agenda for the next session. While Trudeau’s Liberals hold a minority grasp on government, there is little appetite for an election during the Covid-19 crisis.

Economic upheaval and uncertainty–especially the kind resulting from the Covid-19 pandemic–demands a steady hand from financial governing bodies as they navigate the chaos. In Canada, the central bank’s previous governor, Stephen Poloz, finished his mandate but was reportedly willing to stay on to assist through the crisis. He wasn’t asked to do so.

Beginning June 3, Tiff Macklem, a former senior deputy governor at the Bank of Canada as well as a former dean of the Rotman School of Management, will take the top spot at the bank.

“This crisis is very different in many respects from the crisis we faced in 2008 and 2009,” said Macklem at his introductory news conference. “In this setting, the financial system can play more of a stabilizing role. I want to underline the bold actions that the Bank of Canada has taken to provide liquidity to the system are being extremely helpful in making sure the system can play that role,” he added, noting the bank’s commitment to restoring confidence.

While Macklem was relatively mum on his future plans for monetary policy, he cautioned against negative interest rates, calling them too disruptive for an already disrupted financial system and adding that he was comfortable with 0.25% being as low as the bank would go. While Canada faces an economy in lockdown similar to the rest of the world, commodities, especially oil, have taken a significant toll on economic growth (or lack thereof). The industry reduced spending by $7 billion and oil sands investment looks to hit its lowest in 15 years, according to consultancy IHS Markit. Spending had already plunged from more than $30 billion in 2014 to under $10 billion last year.

Based upon updated economic scenarios and announced federal measures, the Parliamentary Budget Office of Canada says the budget deficit will increase to almost $25 billion Canadian dollars ($17.9 billion) in the current fiscal year and skyrocket to CA$252 billion in 2020-2021.

In heady times such as these, many expect Macklem to stay the course set by his predecessor. With no official acts of his own yet and a once-in-a-lifetime economic shock to contend with, it appears that Tiff Macklem will begin his tenure in as measured a manner as possible.