As a result, the effective borrowing costs faced by banks, businesses, and households are estimated to have fallen by about 75 basis points over the past year. Chart 4 (Bank Funding Costs) indicates one element of increased funding costs for banks.
BIS Review 101/2008  9  Reflecting the recent contraction in economic activity and generally challenging credit market conditions, growth in business credit has slowed in recent quarters (Chart 5: Yield Spreads on Canadian Corporate Bonds). In contrast, growth in household credit remains robust (Chart 6: Business and Household Credit).