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Economy looking up as Banks add $3.3B of commercial loans in December
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Feb 7, 2012
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<p>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 “<em><a href="http://www.bankofcanada.ca/wp-content/uploads/2010/10/wfs.pdf">Business loans to Canadian residents for business purposes</a></em>�:</p>
<p>December 2008: $191.563 billion<br />
January 2009: $185.679 billion<br />
February: $183.759 billion<br />
March: $184.089 billion<br />
April: $181.811 billion<br />
May: $178.691 billion<br />
June: $176.365 billion<br />
July: $174.664 billion<br />
August: $173.818 billion<br />
September: $171.152 billion<br />
October: $171.091 billion<br />
November: $168.425 billion<br />
December: $169.430 billion</p>
<p>January 2010: $167.892 billion<br />
February: $168.104 billion<br />
March: $169.495 billion<br />
April: $169.163 billion<br />
May: $166.378 billion<br />
June: $165.369 billion<br />
July: $166.988 billion<br />
August: $164.774 billion<br />
September: $163.976 billion<br />
October: $168.401 billion<br />
November: $168.892 billion<br />
December: $169.170 billion</p>
<p>January 2011: $170.42 billion<br />
February: $171.800 billion<br />
March: $174.028 billion<br />
April: $175.198 billion<br />
May: $173.974 billion<br />
June: $176.527 billion<br />
July: $177.574 billion<br />
August: $177.654 billion<br />
September: $176.856 billion<br />
October: $178.214 billion<br />
November: $176.705 billion<br />
December: $180.526 billion</p>
<p>Last November, RBC CEO Gord Nixon <a href="http://www.theglobeandmail.com/report-on-business/rbcs-nixon-cites-lack-of-loan-demand-for-economic-malaise/article2238790/">voiced concern</a> 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 “<em><a href="http://www.wellingtonfund.com/blog/2012/01/09/did-the-banks-just-find-10-4b-of-new-earnings-part-2/#axzz1lbmUXJCU">Did the banks just find $10.4B of new earnings? part 2</a></em>” Jan 9-12).</p>
<p>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.</p>
<p>MRM</p>
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