Canadian banks are making a change in the way they hand out money. As they start this new year Canadian Banks have made it clear that they are going to be giving less handouts to businesses. This move has ensured that the big banks are seeing good earnings in the first quarter of the year. Analysts suggest that this may lead to all banks with the exception of National Bank and BMO to increase their dividends. The real question comes down to the magnitude of the lending shortage. How much money are these banks able to lend to businesses? Is it a significant enough amount of money that it could severely affect the way people will look at starting a business?
This won't affect me personally but it will definitely affect my nationwide community. This affects the businessmen and businesswomen of this very nation. This affects the way that these people will look at starting a business in this country. With a lot less lending we would see a drop in the amount of ambitious business ventures. Starbucks, Google, Pandora, and many more companies took great risks and great loans to be where they are today. Without these loans we might not be able to see the rise of 'The Next Big Canadian Thing'. Though the banks aren't doing this without reason. They need to do this to help the country get out of a recession. Hopefully this can be a big enough push that Canada needs to get back on the track of economic recovery.
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