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Business Credit

About Business Credit Indicators

Changes in business credit reflect net new financing obtained by non-financial firms from various sources.

Overview of Total Business Credit

This table provides an overview of changes in business credit over the past year. The total dollar amount outstanding is noted, and broken down into components, as is the percentage distribution. The 12-month changes are given in dollar terms (again, broken down by component), and as a percentage of the total amount outstanding. Annualized 3-month and 1-month changes are also provided to give a sense of recent trends in business credit.

February 2014
C$ Billions Outstanding % Distribution 12-month  Dollar Change 12-month % Change 3-month % Change 1-month % Change
Total business credit* 1520 100 103.0 7.0 7.6 6.7
Short-term business credit* (1) 426 28.0 32.0 7.2 7.9 6.9
Chartered Banks* 326 21.4 24.7 7.0 5.9 -3.2
Non-Banks 82 5.4 5.5 7.2 8.8 4.8
Off-balance sheet Loans securitized by banks and non-banks 5 0.3 -0.1 -1.7 -11.5 26.2
Commercial Paper 13 0.8 1.8 16.2 46.5 267.8
Long-term business credit 1094 72.0 71.0 6.9 6.6 5.2
Chartered Banks 48 3.2 4.2 9.6 7.6 -2.3
Non-Banks 87 5.7 4.3 5.2 8.4 6.8
Off-balance sheet Loans securitized by banks and non-banks 14 0.9 -0.8 -5.7 -7.0 -3.8
Bonds & Debentures 429 28.2 40.5 10.4 4.7 5.2
Equity & Warrants 484 31.9 20.4 4.4 8.1 5.8
Trust Units 32 2.1 2.4 8.3 7.6 8.3

Notes:
Data on this table are not seasonally adjusted unless otherwise stated.
* - Last two columns are seasonally adjusted.
  1. Excludes inter-bank loans, loans by crown corporations and foreign currency loans to all levels of Canadian government.

    Balance sheet data reflect both new business loans and the change in the value of the stock of existing foreign currency loans due to exchange rate movements. This means that at times when the Canadian dollar depreciates, the translated value of existing foreign currency loans increases. The business credit data shown in this table strips out the effects of exchange rate movements to isolate new funding. Therefore, the growth rates of the three categories — Total Business Credit, Short-term Business Credit, and Short-term Chartered Bank Business Credit — do not agree with data shown on page 14 of the Weekly Financial Statistics and on CANSIM Table 1760023.

Total Business Credit

This graph shows changes in total business credit since 1990, both in annualized three-month percentage terms, and in year-over-year percentage terms.

Business Credit from Chartered Banks

This graph shows changes in business credit from chartered banks since 1990, both in annualized three-month percentage terms, and in year-over-year percentage terms.

Total Bond Issuance - Financial Corporations

This graph shows both gross and net issuance of bonds by financial corporations since 1990 in dollar terms. Net issuance is gross issuance minus redemptions. Bond issuance is a good indicator of funding for longer-term projects.

Total Bond Issuance - Non-Financial Corporations

This graph shows both total gross and total net issuance of bonds by non-financial corporations since 1990 in dollar terms. Net issuance is gross issuance minus redemptions. Bond issuance is a good indicator of funding for longer-term projects.

Selected Money Market Instruments

This graph shows the net amount outstanding of three key money market instruments commonly used for short-term financing: bankers' acceptances, commercial paper issued by non-financial corporations, and asset-backed commercial paper.

* Non-seasonally adjusted and end-of-month data; all other series, seasonally adjusted and average of month-end data.