Bay Street banking analyst Routledge heads to Ottawa for finance role

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One of Bay Street's influential banking analysts is heading to Ottawa to serve as a senior adviser in the federal finance department.

Peter Routledge, who covers financial-services companies including banks and insurers for National Bank Financial, is leaving the investment bank and moving to Ottawa to start a new role in the public service in February.

The departure extends the list of Bay Street figures who have taken influential positions in Ottawa in the past few years – both on a full-time and temporary basis.

Current Canada Housing and Mortgage Corp. head Evan Siddall is a former investment banker; Onex Corp. partner Nigel Wright once served as former prime minister Stephen Harper's chief of staff; and CIBC World Markets banker Dan Nowlan recently served as former finance minister Joe Oliver's chief of staff.

National Bank itself has a growing roster of employees with federal government service. Investment banker Andrew Wallace was a policy adviser in the Prime Minister's Office under Mr. Harper and former mining banker Steven Farber was a senior adviser to former foreign affairs minister John Baird.

Mr. Routledge's experience as a banking analyst will likely come in handy in his new role. He has a deep understanding of the financial system, and he often wrote in-depth reports on issues such as household debt and regulatory capital – two issues the current government is tackling.

Mr. Routledge and his counterparts at rival investment banks are also in regular contact with executives at the companies they cover, which could be helpful when debating new policy frameworks.

Lately, many Ottawa institutions have made comments about the need for financial services policy changes. The Bank of Canada is particularly concerned about growing household debt, which makes the economy and the financial system more vulnerable to adverse shocks to incomes and interest rates.

Under Mr. Siddall, CMHC has become much more vigilant about its underwriting guidelines. Mr. Siddall is also advocating that Canadian lenders absorb more risk on the mortgages they underwrite. The federal government is currently studying ways to change this.

Mr. Routledge is joining the finance department at a particularly busy time. In the next two years, the government has plans to tackle the issues of bail-in debt, lender risk sharing and the renewal of the Bank Act.