Economy looking up as Banks add $3.3B of commercial loans in December
Things continue to improve in the domestic economy, if you take this stat to mean something. As we try to do each month, here are the updated figures on corporate drawdowns. The category is “Business loans to Canadian residents for business purposesâ€:
December 2008: $191.563 billion
January 2009: $185.679 billion
February: $183.759 billion
March: $184.089 billion
April: $181.811 billion
May: $178.691 billion
June: $176.365 billion
July: $174.664 billion
August: $173.818 billion
September: $171.152 billion
October: $171.091 billion
November: $168.425 billion
December: $169.430 billion
January 2010: $167.892 billion
February: $168.104 billion
March: $169.495 billion
April: $169.163 billion
May: $166.378 billion
June: $165.369 billion
July: $166.988 billion
August: $164.774 billion
September: $163.976 billion
October: $168.401 billion
November: $168.892 billion
December: $169.170 billion
January 2011: $170.42 billion
February: $171.800 billion
March: $174.028 billion
April: $175.198 billion
May: $173.974 billion
June: $176.527 billion
July: $177.574 billion
August: $177.654 billion
September: $176.856 billion
October: $178.214 billion
November: $176.705 billion
December: $180.526 billion
Last November, RBC CEO Gord Nixon voiced concern about a lack of demand for new loans within the corporate and commercial borrower universe. For the prior five months, he was right. There was a long flat patch that started in June. But $3.3 billion of new net lending in December takes the overall outstanding chartered bank loan book back to levels not seen since April 2009. Unless, of course, IFRS is at work again (see prior post “Did the banks just find $10.4B of new earnings? part 2” Jan 9-12).
If Mr. Nixon were a farmer, he’d be delighted if it were as simple as talking about the lack of rain that brought about a quick end to a drought.
MRM
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