March 10, 2020 / 2:06 PM / 19 days ago

RBC CEO sees 'fairly material' short-term impact from measures to control coronavirus

TORONTO, March 10 (Reuters) - A “fairly material short-term impact” from global measures to contain the coronavirus outbreak is likely, although the economic effects remain difficult to predict, Royal Bank of Canada Chief Executive Officer Dave McKay said on Tuesday.

“An abundance of caution is appropriate as we try to figure out how to get global control” of the coronavirus, McKay said at the RBC Capital Markets Financial Institutions Conference in New York, which was held as a remote event due to the outbreak.

McKay said he envisions three scenarios: one where the crisis is contained within four to six weeks, leading to a V- or U-shaped economic recovery; one where the disruptions remain for about six to eight months and the precautions slow demand and affect a number of industries; and the worst-case scenario, where it goes on for a prolonged period.

“I don’t think any of us really know yet which of those variations and hybrids of those scenarios will come into play,” he said. (Reporting By Nichola Saminather Editing by Chizu Nomiyama)

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