Canadian Lenders Association report predicts 50,000 job losses, $10.7B annual economic impact from lowering interest rate cap to 35%.
The Canadian Lenders Association (CLA) has commissioned a report from Ernst & Young LLP, predicting that reducing the maximum interest rate cap to 35% will lead to job losses of up to 50,000 and a $10.7 billion decrease in the Canadian economy annually. The report argues that the government's plan to lower the interest rate cap to protect vulnerable borrowers could lead to higher-risk consumers and businesses being cut off from lenders, as potential profits do not outweigh the risks of default.
March 12, 2024
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