Big Banks in Canada See a Surge in Energy Loans
- Oil companies draw down credit lines to weather downturn
- RBC, BMO have the highest impaired loans to the sector
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Canadian banks’ exposure to oil-and-gas loans has surged to a record as energy firms tapped credit lines to combat plunging oil prices.
Energy loans at the country’s six largest lenders jumped 23% to C$71.6 billion ($52.9 billion) in their fiscal second quarter from the prior period, disclosures show. Toronto-Dominion Bank had the largest increase at 29%, while Bank of Nova Scotia remained the biggest lender with C$21.6 billion in loans.