BMO to shutter retail auto finance business as bad debt mounts

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BMO Financial Group says it will close its retail auto finance business in order to reroute resources following a rise in bad debt.

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In its retail line, the bank’s provisions for credit losses rose 800 per cent to $81 million last quarter from $9 million the year before. The higher borrowing costs have begun to slow some lending demand and deal-making amid heavy competition among Canadian banks on mortgage rates and wider concerns about a general economic slowdown.Article content

 

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