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Is Your Bank a Friend or Foe?

Yesterday morning Federal Finance Minister Jim Flaherty was in Toronto meeting with executives from the country's top banks. The meeting was set in December in response to complaints to the Minister's office about credit availability--or lack thereof. An article published yesterday afternoon on The Globe and Mail web site (""Flaherty huddles with bank chiefs," by Tara Perkins), reports that the meeting was "productive." A statement issued by Nancy Hughes Anthony, the head of the Canadian Bankers Association, after the meeting is quoted. Here's what she said:

"One of the issues discussed at the meeting was availability of credit. As the Minister has stated publicly before, he wants to ensure that Canadian businesses and individuals have access to credit during this economic turmoil…. We assured the Minister that the banks are committed to doing what they can to help Canada weather the recession and that they will continue to lend to credit-worthy individuals. It's important to remember, however, that banks represent only about half of the credit market for small and medium-sized businesses. And it's among some non-bank sources of financing that we are seeing some pullback I making credit available."

Is this fact or spin? What are the criteria for "credit-worthiness"? Retailers and suppliers in this industry are, by and large, small- and medium-sized business owners. What are you experiencing at your bank? Are you "credit worthy"? Is your bank going to be your friend or your foe in 2009?

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This page contains a single entry from the blog posted on January 5, 2009 4:50 PM.

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