Canadian credit conditions deteriorated in the second quarter of 2026, according to the Bank of Canada’s Senior Loan Officer Survey. The survey indicator fell to -1.0 in Q2 2026, down from 1.0 in the first quarter, signaling a shift toward tighter lending standards across the banking sector.
The move from positive to negative territory suggests loan officers are reporting more restrictive terms or reduced willingness to extend credit compared with earlier in the year. While the survey does not provide details in this release, the negative print typically reflects a more cautious stance by lenders, which can weigh on borrowing by households and businesses.
The updated figures, released on 21 August 2026, will be closely watched by markets and policymakers for signs of emerging stress in credit channels and potential implications for Canada’s broader economic momentum in the second half of the year.
