Royal Bank CEO Gord Nixon says markets are showing signs of recovery, and the economic tailspin slowing.

He says even in the hard-hit U.S., the bank's credit profile is showing some signs of improvement.

At the same time, Nixon told a financial forum that economies around the world still “face many challenges.”

Environmental activists questioned Nixon whether he was comfortable with his bank's financing development of the Alberta oilsands which they view as destructive and unhealthy.

Nixon said his bank tries to take a balanced approach and all financial institutions invest in the energy sector.