Poloz warns regulation could stifle credit to SMEs


Regulatory reform efforts such as Basel III could make it harder for small businesses to obtain credit by discouraging financial innovation, Bank of Canada governor Stephen Poloz has warned.

"It would be surprising if the net effect [of new regulations] were not to reduce the availability of credit," Poloz said during a speech at the Economic Club of New York in Manhattan yesterday.

Since 2007, global banks have already sold off more than $700 billion in assets and operations, of which foreign o

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