As the coronavirus pandemic continues to take a mounting toll on the Canadian economy, the Canadian Bankers Association (CBA) has announced a broad aid package to support customers, businesses, employees and communities.

Member banks are redeploying staff to create tailored support plans for individuals and small businesses “as we come together to manage the financial uncertainty and economic disruption faced by our families, friends, employees and communities,” the CBA said.

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The trade association and lobby group has over 60 members, including Canada’s Big Five banks, smaller domestic banks, and Canadian subsidiaries of foreign banks.

Here’s the detail of the relief programme, which is a reinforcement of the programme already in place:

Personal customers

  • Reducing credit card interest rates, deferring payments and instituting low minimum payments on credit cards and lines of credit. As of June 30, more than 445,000 credit card deferral requests are in process or have been completed by eight banks.
  • Canada’s banks are offering mortgage payment relief to customers by way of deferred mortgage payments. As of June 30, 13 CBA member banks have provided help through mortgage deferrals or skip a payment to more than 760,000 Canadians, which represents about 16% of the number of mortgages in bank portfolios.
  • Collaborating with the Government of Canada to offer online enrolment of Canada Revenue Agency’s (CRA) direct deposit to facilitate Canada Emergency Response Benefit payments. Over 2.5 million Canadians have already enrolled through their financial institution for CRA direct deposit.
  • Instituting policies that prioritize seniors, frontline healthcare workers and vulnerable populations when they access in-branch services

Small business customers

  • Canada’s banks serve three million self-employed, small and medium-sized businesses across Canada and have authorized more than $254.6bn in credit to this sector as of December 2019.
  • Banks are delivering fast access to the Canada Emergency Business Account (CEBA) program, providing small and medium-sized companies interest-free loans of up to $40,000, including facilitating the recent phase three expansion of the program.
  • As of July 3, 688,000 CEBA loans have been approved by financial institutions including banks, representing roughly $27.4bn in interest-free credit for eligible businesses.
  • Partnering with the Government of Canada to expedite accessto the Canada Emergency Wage Subsidy (CEWS) for businesses. The new service allows eligible businesses to register their business payroll accounts for direct deposit with the Canada Revenue Agency directly through their bank business portals.
  • Banks have partnered with the Business Development Bank of Canadato offer a Co-Lending Program and with Export Development Canada to offer a Loan Guarantee Program for small and medium-sized enterprises through the federal government’s Business Credit Availability Program (BCAP).
  • Working with business clients to determine the best options to suit their specific circumstances. Banks have introduced a range of flexible measures for existing loans, including deferrals and term extensions. More than 74,000 deferrals have been extended to business accounts for SME, commercial and corporate customers with a total value of $2.5bn.
  • Providing advice and support of small business clients’ immediate cash management or new lending needs

Employees

  • Intensive cleaning programs to ensure that workplaces, including branches, remain as safe as possible for everyone
  • Paying bonuses and extra paid days off to customer-service employees who work in branches and call centers
  • Implementing broad-based work from home options for any roles that can be performed remotely to support public health efforts and the well-being of employees

Communities

  • Gifts to Canadian charities such as United Way Centraide Canada, Food Banks Canada and Breakfast Club Canada to provide essential services, community services and services for senior citizens
  • Seven banks have donated a combined $10.8m to support frontline health care workers and community services urgently needed for vulnerable individuals affected by the public health, social and economic consequences of Covid-19

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