Macklem Says Bank Capital Rule Change Alone Won’t Spark Lending

AI Summary

Bank of Canada Governor Tiff Macklem states that loosening bank capital rules alone will not increase lending or economic activity. Analysts agree that regulatory changes need borrower demand to effectively stimulate credit.

Looser bank capital rules alone won’t boost economic activity, according to Bank of Canada Governor Tiff Macklem, echoing analysts who questioned whether a recent regulatory change would immediately spur more lending without borrowers at the door.