Now let us go back to the three numbers I mentioned just now. Why do self-employed businesses and SMB owners have more loans than SMBs? It is determined by risks. The registered companies now are companies of limited liability that can go bankrupt. When SMBs apply for loans, banks need to check whether they have collaterals.
The other major development since October was another sharp decline in oil prices late in 2018, which put Canada’s oil sector under considerable stress. More recently, oil prices have firmed, including the prices our western producers receive. But transportation constraints on future growth remain a significant source of drag and uncertainty. This has led to another downward revision to investment intentions in the sector.