The chief executive of RBC hit out at foreign investors who use Canadian real estate as a “piggy bank” for their capital.

Speaking at an investors’ conference in New York Tuesday, David McKay said that Canada didn’t need the kind of foreign investment where an asset sits empty doing nothing productive.

McKay said that foreign capital is among the factors fuelling the home price surge in Toronto and Vancouver, and said he supports taxation to stem the flow.

The bank leader added that measures already taken to cool the hottest markets are taking effect, with demand weakening and prices stable despite some intensive bidding remaining.

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