Carney Pushes 5 Largest Canadian Banks To Lend To Consumers, Businesses

Ottawa, Ontario (AHN) - He called the top five Canadian banks to lead the way by lending their funds, which will boost the local economy.

Carney told the Globe and Mail, "It is not clear to me that they need additional capital buffers... What is clear to me is that there is unfilled demand for credit for worthy investments, and I'm sure that our banks will see these opportunities in the fullness of time."

A similar call has been made by European Central Bank president Jean-Claude Trichet who hinted of reducing the current deposit rate of 2 percent to move EU banks to extend loans instead of building nest eggs.

Carney brushed aside suggestions that Canada follow the footsteps of the U.S. Federal Reserve which reduced benchmark interest rates to zero percent in a bid to spur economic growth. While the Canadian central bank governor forecasts a trying 2009, Carney said he nevertheless sees light at the end of the tunnel for Canada.