Canadian bankers warn proposed taxes could tighten lending and threaten jobs

Canadian Bankers Association CEO says government "singling out banks" with proposed taxes, which could hurt lending
Taxes aimed at banks include Canada Recovery Dividend and treating dividends as business income
Financial industry warns taxes could lead to tighter lending standards and job cuts
CBA represents around 65 banks in Canada
Government says banks were invited to provide feedback on proposed taxes before they were announced

reuters.com

Relevant topic timeline:

8/20/2023

Business Council of Canada urges PM, ministers to better position economy ahead of cabinet retreat

### Summary Business groups in Canada are urging the federal government to prioritize fiscal stability and tax incentives to compete with the US in clean energy. They are concerned about rising debt and interest rates and want the government to set a target for debt levels. The groups also want the government to implement tax incentives related to clean energy and housing, and to revise the process for approving major projects. ### Facts - 📄 Business groups in Canada are calling on the government to focus on fiscal stability and tax incentives at their cabinet retreat. - 📈 The groups want the government to set a target on debt levels and limit debt servicing costs to 10% of government revenue. - 💰 The Business Council of Canada also advocates for the implementation of tax incentives for clean energy and housing. - 🏗️ The groups want the government to revise the process for approving major projects such as mines. - 🇺🇸 Canada is concerned about competing with the US, which has already implemented large subsidies for clean energy. - ⏰ The groups are urging the government to move faster in rolling out tax credits and reforming the approvals process.

9/29/2023

Rising Rates Put Squeeze on Canadian Homeowners with Variable Rate Mortgages

Canadian banks are facing major issues due to the large share of variable-rate mortgages, resulting in negative amortization and difficulties for borrowers in the rising rate environment.

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Posted 9/12/2023, 2:47:00 PM