Canadian Bankers Association

Canadian Bankers Association

November 20, 2008 09:00 ET

Bank Lending to Businesses Continues to Grow: Canadian Bankers Association

Annual loan growth exceeds 11 per cent

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2008) - Business credit from the six largest banks in Canada increased by 11.3 per cent from October 2007 to October 2008 according to data collected by the Canadian Bankers Association (CBA) and released today.

"Our members have provided us with the most up-to-date facts that indicate they have significantly increased the amount of credit to businesses from this time last year," said Nancy Hughes Anthony, President and CEO of the Canadian Bankers Association. "It's a very competitive marketplace, and our members are actively competing with each other for market share."

In addition, the growth in lending by the largest banks, who supply part of the business credit in Canada, is substantially greater than the growth of overall lending to business by all providers of credit which only grew by 3.5 per cent from September 2007 to September 2008. This indicates that these banks are stepping in to provide credit to businesses which have seen their access to other sources of financing reduced.

"While there are some signs that some non-bank credit options are becoming less available for businesses, our banks are working hard to fill the gap in providing financing for these businesses," said Ms. Hughes Anthony.

However, with the Canadian and American economies slowing, there is no question that some of Canada's major industries are going through tough times. When providing credit, sound business practices require that such changing economic conditions be taken into account by lenders.

"Our members know their customers, know the circumstances they are facing and want to help them succeed," said Ms. Hughes Anthony. "Canada's banks remain committed to working with their customers and providing credit during these times of economic uncertainty."

The Canadian Bankers Association works on behalf of 51 domestic chartered banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 257,000 employees to advocate for efficient and effective public policies governing banks and to promote an understanding of the banking industry and its importance to Canadians and the Canadian economy.

Contact Information

  • Canadian Bankers Association
    Andrew Addison
    (416) 362-6093, ext. 220 or Cell: (416) 587-7733