Post by
Tcheck on Mar 10, 2020 8:49am
oil is a liability not a boon
TORONTO, March 10 (Reuters) - Canadian banks have increased
oil and gas lending at about double the rate of total business
loan growth over the past three quarters, raising the prospect
of higher loan losses after Monday's oil price crash.
The pick-up in energy lending at Canada's six top banks has
come even as bad loans and provisions for losses from the sector
climbed, an analysis of company data by Edward Jones and Reuters
shows.
"The developments (over the) weekend ... are certainly
negative for any banks that made loans to borrowers in oil and
gas," said James Shanahan, an analyst at Edward Jones. "I
definitely see an increase in loan losses."
Comment by
Calgary_AB on Mar 10, 2020 9:45am
oil price war is not a new thing, you will also hear that same bank making a killing for investing into oil when noone wants to and oil goes up...nothing new. Without oil you'd be in STONE AGE
Comment by
Calgary_AB on Mar 10, 2020 9:48am
Tcheck, just so you understand the importance of OIL, read again your post and THINK If the LI price dropped to 50% from today, markets will never know it...(exception of 7 companies including NMX) Oil price dropps 20% and the world ends, markets crash, proplr panic, Tcheck runs and gets toilet paper....
Comment by
Takeactionnow on Mar 10, 2020 11:58am
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