From the banker’s point of view, the critical factors affecting credit delivery to this sector are low equity base, absence of marketing tie up, diversion of funds, poor management and book keeping, higher NPAs, mounting of receivables due to delay in payment of bills especially during downturn.
We at the Bank of Canada welcome these opportunities to get out across the country, to speak to business people, and hear your perspectives on the economy. The feedback we receive from businesses from coast to coast is an important part of our monetary policy deliberations.