Mr. Speaker, the Bank of Montreal, the Royal Bank and the National Bank, three of Canada's largest financial institutions, deserve public recognition for a job well done. They have increased the numbers of loans granted to small and medium size businesses to fully one-third of all loans granted in the last quarter.
As we know, small business loans have traditionally been the most difficult to acquire. Banks have always considered small businesses extremely high risk. In the past, up to 80% of small businesses have failed in their first five years of operation. Consequently, established banks prefer the safe investment of large business. Small businesses, however, account for our most rapidly growing employment sector.
A 1995 industry committee report encouraged all banks to reach the one-third ratio for lending to small businesses.
Congratulations to Montreal, Royal and the National Bank of Canada. They are willing to do the paperwork and the in depth investigation required to safely invest in exciting new small businesses all over the country.