January 5, 2009

The year 2008 was the banking world's annus horribilis – when the credit crunch toppled banks, torpedoed stocks and triggered the worst financial crisis since the Great Depression.Gobsmacked bankers, many of whom declared the worst of the crisis over last spring, now admit they have no idea when it might end. The industry's loss of face is startling, but so too are the challenges that lie ahead in 2009.

The credit crunch – originally sparked by Wall Street's misadventures in the subprime mortgage market – has now mutated into a full-blown economic crisis and no corner of the globe is being spared.For their part, Canadian banks have managed to dodge the worst of the fallout and remain the envy of their global peers. Still, they, too, are warning they are not immune to the ongoing malaise.