RBC Injected $2.95 Billion into City National This Year
- Unit realizes $2.7 billion in losses on debt securities
- Regional banks have faced capital pressure amid rising rates
Royal Bank of Canada has injected $2.95 billion into City National Bank so far this year as part of an effort to clean up the California subsidiary’s balance sheet, according to a new regulatory filing.
Most of that capital infusion, disclosed Tuesday in City National’s quarterly call report filed with US regulators, came in conjunction with Toronto-based Royal Bank purchasing debt securities with unrealized losses from City National. City National realized a loss of $2.74 billion on available-for-sale debt securities in the three months through September, according to the filing.