Mr. Robert D. Nault (Kenora-Rainy River):
Madam Speaker, the Royal Bank announced discounts of 10 per cent on service charges for small businesses. The major financial institutions continue to miss the point. Figures from October 1991 to October 1992 show that the value of small business loans by the big six banks increased by a
June 2, 1993
modest 3.8 per cent, compared with a 12 per cent increase for loans to large corporations.
In the same period 450,000 new jobs were created by small business. By contrast, large organizations cut
96,500 people from their payrolls.
Most will know that last year the financial institutions increased their service charges, in some cases by 400 per cent. Now they want us to believe they are doing us a favour by reducing service charges to small businesses by 10 per cent. They control the majority of lending to business. Given that position, they are not just responsible to their shareholders, they are responsible to the country.
The big six have two choices: Change their ways or get ready for the onslaught of new banks in this country.
Subtopic: SMALL BUSINESS LOANS