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Biannual Survey of Suppliers of Business Financing
Data Analysis, Second Half 2012
This document presents data on business lending activities gathered from the
Biannual Survey of Suppliers of Business Financing.
www. ic.gc.ca/surveys
May 2013
Overall Conditions
Survey results highlight a continued increase in business
lending activity in the second half of 2012. In total, lenders
disbursed approximately $75 billion in new loans 1 to Canadian
businesses between July and December (H2 2012), compared
with approximately $70 billion in new loans disbursed between
January and June (H1 2012) (Figure 1). In total, 2012 lending
activity increased by 15.1 percent compared to 2011 levels.
These results are consistent with an overall loosening in
business lending conditions as reported in the Bank of
Canada’s Senior Loan Officer Survey. 2
Figure 1: Value of credit outstanding ($ billions) and
disbursed ($ billions)
600
500
400
300
200
100
0
61.5
H1 2011
64.6
H2 2011
Credit outstanding (left)
70.4
H1 2012
74.9
H2 2012
80
70
60
50
40
30
20
10
0
Credit disbursed (right)
for small businesses (those with loan authorization levels
below $1 million) and medium-sized businesses (those with
loan authorization levels of between $1 million and less than
$5 million), with loan disbursals rising by about 7.5 percent and
4.4 percent respectively (Figure 2). Year-over-year, lending
activity increased by 10 percent, 9 percent, and 18 percent for
small, medium-sized and large businesses respectively.
Figure 2: Value of credit outstanding ($ billions) and
disbursed ($ billions) by size of business
Small businesses
100
50
0
Medium-sized businesses
120
100
80
60
40
20
0
Large businesses
400
200
0
9.9
H1 2011
12.6
H1 2011
38.9
H1 2011
10.2 10.7
H2 2011
H1 2012
13.1 13.7
H2 2011
41.3 46.0
H2 2011
H1 2012
H1 2012
11.5
H2 2012
14.3
H2 2012
49.0
H2 2012
15
10
5
0
15
10
5
0
60
40
20
0
Source: Statistics Canada, Biannual Survey of Suppliers of Business
Financing, 2012.
Credit Outstanding (left)
Credit disbursed (right)
Business Size Conditions
Based on survey findings, lending activity for businesses of
all sizes increased in the second half of 2012. The increase
was significant among large businesses (those with loan
authorization levels above $5 million) to which lenders
disbursed approximately $49 billion in new loans. This
represented a 6.5-percent increase in disbursals compared
with the first half of 2012. Similarly, lending activity increased
Source: Statistics Canada, Biannual Survey of Suppliers of Business
Financing, 2012.
Lending Activity
Foreign banks continued to lend aggressively in the second
half of 2012, increasing loan disbursals to businesses
by 20.5 percent. This followed a 25.6-percent increase in
disbursals in the first half of 2012. Credit unions and Caisses
1
New loans include term loans and mortgages that generally have a fixed repayment schedule of greater than one year.
2
The Senior Loan Officer Survey collects information, on a quarterly basis, on the perspectives of lenders on price and non-price terms of business lending.

populaires continued to increase loans as well, with disbursals
rising 10.3 percent in the second half of 2012 compared with
the first half of 2012. Loan disbursals by domestic banks, which
make up 42.2 percent of the new loans market, also continued
to grow steadily increasing disbursals by 3.4 percent in the
second half of 2012 compared with the first half of 2012. Yearover-year,
loans from domestic banks, other banks (including
foreign), credit unions and Caisses populaires have increased
by 10 percent, 27 percent, and 19 percent respectively.
Table 1: Value of credit disbursed ($ millions) by
supplier type
2011 2012
Supplier type H1 H2 H1 H2
Domestic banks 26,726 29,994 30,563 31,609
Other banks 15,609 13,191 16,567 19,962
Credit unions, Caisses 6,744 7,419 8,029 8,856
populaires
Finance companies 6,876 8,081 9,370 9,242
Insurance companies 5,578 5,964 5,850 5,193
and portfolio managers
All suppliers 61,533 64,648 70,379 74,862
Source: Statistics Canada, Biannual Survey of Suppliers of Business
Financing, 2012.
Industry Conditions
Survey findings point to an increase in lending activity across
most sectors in the second half of 2012. Sectors experiencing
the strongest increases were the accommodation and food
services sector and the construction sector, which saw
increases in loan disbursals of 22.2 percent and 9.9 percent
respectively (Figure 3). Firms in the manufacturing sector
also experienced a strong increase in lending activity, with
loan disbursals rising by 8.9 percent. Conversely, a decline
in lending activity was observed in the professional services
sector. Specifically, new loans disbursed to professional
service businesses fell by 8.8 percent from $3.2 billion in the
first half of 2012 to $2.8 billion in the second half of 2012.
However, on a year-over-year basis, lending activity was up
across all sectors.
About the Survey
The Biannual Survey of Suppliers of Business Financing is
the result of a commitment by the Government of Canada
to improve the availability of information about financing of
businesses in Canada. Data are collected from 120 major
suppliers of financing, including domestic banks and credit
unions and Caisses populaires, representing over 90 percent
of all lending to businesses in Canada.
This report was prepared by Daniel Seens, CFA, an
economist in the Small Business Branch. Questions can
be directed to him at daniel.seens@ic.gc.ca.
Figure 3: Value of credit outstanding ($ billions) and
disbursed ($ billions) by industry
Primary and agriculture
100
10.3
12.3 14.6
50
0
Construction
50
25
0
H1 2011
6.6
H1 2011
Transportation
40
20
0
2.7
H1 2011
Manufacturing
60
40
20
0
5.5
H1 2011
H2 2011
H2 2011
H1 2012
H1 2012
3.1 3.1
H2 2011
H1 2012
5.9 5.6
H2 2011
Wholesale and retail trade
100
50
0
5.2
H1 2011
H2 2011
H1 2012
H1 2012
Finance, insurance, real estate and rental
200
100
0
15.7
H1 2011
Professional services
20
10
0
1.9
H1 2011
15.9 16.0
H2 2011
H1 2012
2.2 3.2
H2 2011
Accommodation and food services
20
10
0
2.5
H1 2011
6.3 7.1
5.6
H1 2012
1.6 1.8
H2 2011
Credit outstanding (left)
H2 2012
H2 2012
H2 2012
H2 2012
H2 2012
H2 2012
Source: Statistics Canada, Biannual Survey of Suppliers of Business
Financing, 2012.
Note: Numbers do not add up due to exclusion of the “other industries”
category.
7.1
H1 2012
14.7
7.8
2.9
6.1
7.6
16.9
2.8
H2 2012
2.2
H2 2012
20
10
0
10
4
2
0
5
0
10
5
0
10
5
0
20
10
4
2
0
4
2
0
0
Credit disbursed (right)
Biannual Survey of Suppliers of Business Financing—Data Analysis, Second Half 2012 2