Bloomberg News

Carney Says Canada Banks May Slow Lending, Buy European Assets

November 16, 2011

Nov. 15 (Bloomberg) -- Bank of Canada Governor Mark Carney said that North American banks may slow domestic lending as they use some of their cash to buy assets from European finanical companies dealing with the region’s debt crisis.

“As they buy those assets, they aren’t necessarily lending to businesses in North America,” Carney said in an interview with Canadian Broadcasting Corp. last night. “The good news is Canadian banks are so strong that they can do both,” he said.

He also said the direct impact of any European slowdown on Canada may be “relatively modest” because there are fewer direct trade links than with the U.S.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Victoria Batchelor at vbatchelor@bloomberg.net


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