Canadian corporate bank loans hit new 39 month low

According to data released by the Bank of Canada, commercial and corporate lending by Canadian Chartered banks has dropped to depths not seen since May 2007. The category is “Business loans to Canadian residents for business purposes”:

December 2008: $191.563 billion
January 2009: $185.679 billion
February: $183.759 billion
March: $184.089 billion
April: $181.811 billion
May: $180.191 billion
June: $177.865 billion
July: $176.164 billion
August: $175.318 billion
September: $172.652 billion
October: $172.592 billion
November: $169.928 billion
December: $170.930 billion
January 2010: $169.423 billion
February: $169.604 billion
March: $170.959 billion
April: $170.663 billion
May: $167.878 billion
June: $166.869 billion
July: $168.488 billion
August: $166.274 billion

Commercial and corporate lending by chartered banks to Canadian-based businesses is down $25.3 billion since December 2008, but that’s very old news if you are a regular blog visitor. What’s new info is that after a momentary uptick in July, the worm quickly turned in August and all of the gains were reversed.

You have to go back to May 2007 to find a lower figure.

Consumers weren’t so shy in August, however: adding to outstanding balances in personal loans, credit cards, lines of credit and residential mortgages.

The tale of two balance sheets.

MRM