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Show Me the Money :, Access to Finance for Small Borrowers in Canada, Vladimir Klyuev

Abstract
This paper examines access to business finance by Canadian small and medium-sized enterprises (SMEs) and to housing finance by Canadian households (particularly non-prime borrowers) against the background of a fairly concentrated and protected banking industry. It finds access broadly adequate for the former group. However, given the dominance of the large banks and their fairly low risk tolerance, financing of riskier projects is a challenge. Problems with venture capital, plausibly related to the prevalence of tax-advantaged labor-sponsored funds, exacerbate the situation for the most innovative SMEs. The paper also finds the market for housing finance to be highly advanced and sophisticated. However, non-prime mortgage financing is in its infancy in Canada, and further development of that sector (while avoiding the excesses that beset the U.S. market in the last few years) would be beneficial. More broadly, despite recent innovations, options available to Canadians for financing house purchases are still somewhat limited, with scarce availability of mortgage maturities beyond five years particularly surprising. Further advances in securitization could help progress in both of these areas
Table Of Contents
Contents; I. Introduction; II. SME financing; A. SME sector in Canada; B. Sources of SME financing; Figures; 1. Bank share in credit to SMEs; C. SME satisfaction in dealing with finances; 2. Credit to SMEs as a share of total business lending by domestic bands; 3. Constraints on SME growth, Canada 2007; 4. Percentage of all respondents saying "cost of finance" is constraining their ability to grow, OECD countries; D. Venture capital; E. Government support for SMEs; III. Mortgage Markets; A. Overview of housing finance; 5. Residential mortgages outstanding
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (31 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452746067

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