Banking Key Indicators During Crisis and Recovery Periods: A Comparative Analysis of Five Canadian Banks Across Five Economic Crises

This study extends previous research on key banking indicators during crisis periods by conducting a comprehensive comparative analysis of crisis and recovery periods for five major Canadian banks across five distinct economic crises from 1992 to 2020. It examines which market price indices significantly predicted daily closing prices during five crisis periods compared to their corresponding recovery periods using multiple linear regres-sion. Findings reveal that the Financials index shows consistently positive significance during crises and their recovery periods across all banks. During recovery periods, the significance of indicators changed toward sector-specific indices, interest rates, and market capitalization variables that were less important during crises. Banks exhibited heterogeneous recovery paths, with some normalizing quickly while others remaining sensitive to crisis-related predictors. These findings enhance understanding of banking sector resilience and inform portfolio management during recovery periods. The results indicate that recovery periods require distinct analytical approaches from crisis periods, with important implications for risk management and investment decisions.