Oil's Impact On Canadian Banks

#PreMarket Prep hosts Dennis Dick and Joel Elconin discussed oil's impact on the Royal Bank of Canada RY on Thursday.

Elconin noted how the stock has declined nearly 20 percent over the past six months and pondered when it will finally hit a bottom.

Dick suggested that it will find a bottom “when oil does” since Canada is an “oil dependent country” and many of the banks have made loans to small oil producers.

Investors may be concerned that losses could come in the future with bad oil-related loans, according to Dick. With the price of oil declining, it stands to reason that Canadian banks will be harmed if small oil companies go bankrupt.

Royal Bank of Canada closed at $60.26, down 2.02 percent.

Listen to the show in the clip below:

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