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Meeting the Challenges of Global Banking
Earle McLaughlin's 1979 retirement coincided with the advent of a decade of fundamental change for Canadian banking. Under the chairmanship of Rowland Frazee (1980-1986), the bank faced the challenge of sharp economic recession, unprecedented high interest rates and, as an international consequence of these last two factors, severe debt problems in the developing world. At the same time, a process of national and global financial deregulation began to break down the traditional lines of demarcation in finance. Canada's "big bang" came in 1986 when the age-old four pillars of Canadian finance were exposed to the first shocks of a deregulated financial marketplace. Bankers were obliged to learn new skills and occupy new roles at a pace quite out of keeping with the traditional stately pace at which the Canadian banking system had evolved since the 1871 Bank Act. Such changes quickly altered the face of world banking; once among the world's largest, Canadian banks soon found themselves competing with huge new international banks.
Three pillars of Royal Bank, 1986 |
 Allan Taylor, chairman designate, on the left, Rowland Frazee, retiring chairman, centre and Earle McLaughlin, retired chairman, on the right, posed for this photo shortly before Allan Taylor became chairman of Royal Bank on June 1, 1986. From 1960 until January 1995, these three men, in turn, guided Royal Bank through 35 years of tremendous growth and change. Earle McLaughlin affectionately dubbed this photo "coming, going and gone". |
Royal Bank met these challenges with characteristic boldness. Under Allan Taylor (1986-1995), the bank moved closer to becoming a fully integrated financial services group and responded with a variety of new services to better serve an increasingly fragmented and competitive marketplace. Dominion Securities, Voyageur Insurance Company and Royal Trust were added to the "family" and increased revenue generation from both traditional and emerging businesses paved the way for a strong future. On the international front, the worrisome LDC debt problems of the early 1980s were overcome and the bank rethought its international orientation to emphasize services for its multinational corporate clients. Carrying on a long-standing tradition, the bank's commitment to corporate social responsibility reached a new plateau as annual charitable donations grew to $25.5 million in 1999, one of the largest philanthropic budgets of any Canadian corporation.
Royal Bank is a small business bank |
 The Merchants Bank was formed in 1864 by businessmen in response to a need for business financing in Halifax. One hundred and twenty years later, in 1984, Royal Bank was serving one in every four independent businesses in Canada and these businesses were using a range of more than 80 banking services. This photo of a Victoria, British Columbia account manager visiting a client at his restaurant appeared in the bank's 1984 Annual Report. |
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Did You Know?
Did you know that in 1956, Royal Bank President James Muir traveled to the Soviet Union before any Canadian minister of external affairs?
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