The Globe and Mail reports in its Thursday edition that Royal Bank of Canada chief executive officer Dave McKay notes increased competition within Canadian banks, creating pressure on profit margins. The Globe's James Bradshaw writes that banks compete to retain or grow their customer base, particularly as customers seek lower interest rates for home loan renewals. This competition also extends to attracting deposits, which are crucial for funding loans but are becoming more costly for banks to acquire. That has spurred fierce competition for customers, especially the coveted clients who have more than one of a bank's products. Mr. McKay told investors at a Scotiabank conference on Wednesday that featured major bank CEOs: "They talk about Canada as being an oligopoly. It is a ruthless oligopoly, at the end -- ruthlessly competitive." Banks have experienced increased funding costs due to high interest rates, which have led customers to seek better returns on their savings. While U.S. banks have raised loan rates to offset these costs, Canadian banks have absorbed the costs, competing them away and impacting profit margins. Mr. McKay believes that this competitive pressure is eroding shareholder value in many cases.