Oil rout mars reputation of Canadian banks as world's safest lenders

Toronto

CANADIAN banks' reputation as the world's safest lenders isn't worth what it once was as collapsing crude oil prices add to a growing list of economic challenges facing their home market.

The lower borrowing costs Canadian banks enjoyed compared with global peers in the international bond market for much of the last decade have all but disappeared over the past six months as crude, Canada's biggest export, began its slide to the lowest since 2009, Bank of America Merrill Lynch data show.