And keep asking them. Every time I hear about record bank profits, my spider sense starts to tingle. And every time I hear about record personal debt levels for Canadians, I have to wonder why we aren’t drawing a cause and effect relationship between the two.
I thought this was an interesting perspective about money supply, income distribution, the real economy and the financial sector.
I also read what the people at Canadian Community Reinvestment Coalition have to offer
Specifically, their question 3 of 10 questions to ask about bank profits “Do Canada’s big banks serve people and businesses trying to create jobs well?”
We do know that of the banks’ total lending to business of about $600 billion, only 3% is small business lending (loans under $100,000), while 77% goes to big business in loans over $5 million. The small and medium-sized business sector has created 90% of the jobs in Canada since 1983, and employs half of all working Canadians. If banks do not meet small businesses’ demand for capital, they prevent jobs from being created.
And, I would add, keep those Canadians in debt, helping banks earn bigger profits.
Everyone wants in on the debate. Recently TD released a report stating that the income inequality gap is not growing which has been valiantly debunked by Armine Yalnizyan in a letter to the National Post. Not to be outdone, the Canadian Banking Association is happy to share that profitable banks are good for Canadians.Question is, which ones.
I’ll keep asking.