HomeLoansCanadian banks prepare for shaky economy, more bad loans

Canadian banks prepare for shaky economy, more bad loans

The moon rises over the Toronto city skyline as seen from Milton, Ontario, Canada, January 23, 2016. REUTERS/Mark Blinch/File Photo Acquire Licensing Rights

TORONTO, Dec 4 (Reuters) – Canadian banks had a mixed fourth quarter but a common theme underlining all the reports was the rise in bad loan provisions, signalling that lenders were strapping in for a shaky economy.

While some delivered early Christmas presents to investors with better-than-expected profits, a forecast for more savings and improved cost-cutting measures, the overall bad loans provisions spiked to nearly C$4 billion ($3.0 billion) for the quarter, the highest since the pandemic era.

Reuters Graphics
Reuters Graphics

A common factor was also the prospect of the Bank of Canada (BOC) lowering interest rates next year, which could help consumers with mortgages at the time of renewal and help banks recover from a period of uncertainty.

Read more at www.reuters.com

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