Bank CFOs Weigh In as Corporate Loans Face Test in Canada

Finance chiefs of some of Canada’s largest banks are assessing how long strong demand for loans can continue even as the country’s economy shows signs of losing momentum.

Companies’ use of credit facilities have helped to finance their post-pandemic investments while shielding them from the highest rates in 13 years in the bond market. That in turn has been a fresh source of business for lenders at a time when other desks, including capital markets, run at the slowest pace in several years.

This virtuous circle faces a key test, however, as global economic and geopolitical uncertainties threaten the trajectory ...