Canadian Prime Minister Justin Trudeau has spoken to the heads of the country's six big banks to get their views on the state of the economy and the COVID-19 relief efforts, the Globe and Mail reported on Sunday, citing multiple sources. This was Trudeau's first one-on-one dialogue with the CEOs since the beginning of the coronavirus outbreak, according to the report, which added that the calls took place around the Victoria Day long weekend. The topics covered included adjustments required in relief efforts rolled out by the government, need for further support and pressures faced by clients of the banks, the report said, adding that the talks were 'high-level check-ins rather than deep policy discussions'.

CIBC Asset Management announces CIBC ETF cash distributions for April 2020

CIBC Innovation Banking is pleased to announce a $5 million growth capital financing with Toronto-based Sensibill Inc. ("Sensibill"), a provider of everyday tools such as digital receipt management and SKU-level data that help institutions better know and serve customers. Backed by Radical Ventures, Information Venture Partners, First Ascent Ventures and Impression Ventures, the company will use the funds to support its plans for strategic growth.

TORONTO , May 4, 2020 /CNW/ - A new CIBC study finds that the majority (81 per cent) of Canadian small business owners say COVID-19 has negatively impacted their operations, and many (32 per cent) worry about the viability of their business over the next year. The majority (85 per cent) agree the uncertainty of how long COVID-19 measures will last is currently the hardest aspect to manage. Many business owners (54 per cent) say sales have dropped, and an additional 28 per cent have had to temporarily shut down operations altogether.

(Bloomberg) -- Canadian inflation went negative for the first time since the 2009 recession after the coronavirus lockdown put the brakes on the world economy.Consumer prices dropped 0.2% in April from the same month a year earlier, Statistics Canada reported Wednesday from Ottawa. That’s down from a 0.9% annual rate in March and 2.2% in February.The report adds inflation to the list of economic indicators showing an historic impact from the coronavirus pandemic. Collapsing gasoline prices have pulled inflation lower over the past two months, but weak demand should keep it at extremely low levels for an extended period. That could even spur worries about deflation and keep pressure off the Bank of Canada to ease up on accommodation efforts any time soon.“With the economy likely still underperforming if and when further restrictions are lifted, there will be an underlying drag on inflation that central bankers will need to offset with additional monetary easing,” Royce Mendes, an economist at Canadian Imperial Bank of Commerce, said in a note to investors.Gasoline prices continued to fall as demand remained low because of limited travel, business closures and a supply glut. In April, gasoline posted a 39.3% drop, marking the biggest year over year decline on record. Excluding gasoline, inflation rose 1.6% from the same period last year.Core inflation readings, which factor out volatile items like energy prices and are often seen as a better measure of underlying price pressure, declined to 1.8%, from 1.83% in the prior month, the lowest since January 2019.Consumers paid less for transportation, traveler accommodation, clothing and education but paid more for food and household cleaning products. Supply chain issues resulted in higher prices for beef and pork. The uptick in prices for household cleaning products and toilet paper is a result of increased demand.From March, prices fell 0.7%, matching the largest one-month drop since 2008. Excluding gasoline, inflation dipped 0.1% on the month.Statistics Canada also said it was unable to gather as much data as usual because in-person collection was suspended and some establishments were temporarily closed.(Updates with details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

CIBC Asset Management announces CIBC ETF cash distributions for May 2020

TORONTO , May 7, 2020 /CNW/ - As the disruption caused by COVID-19 creates more pressure on Canadians and their finances, CIBC's support measures have now helped over 200,000 personal and small business banking clients with over $3 billion in improved cash flow through payment deferrals on mortgages, loans, and credit cards, and loans to small businesses through the Canada Emergency Business Account. To date, CIBC has provided relief measures on credit balances of $37 billion . "We understand that every measure of financial relief and advice during this difficult time makes a huge difference to our clients by giving them added cash flow and the confidence that they can manage through the near-term," said Laura Dottori-Attanasio , Senior Executive Vice-President and Group Head, Personal and Business Banking, CIBC.

Media Advisory - CIBC to Announce Second Quarter 2020 Results on May 28, 2020

Moody's has reviewed the following ABCP program in conjunction with the proposed amendment. At this time the amendment, in and of itself, will not result in any rating impact on the respective program's ABCP. Moody's does not believe it will have an adverse effect on the credit quality of the securities such that the Moody's rating is impacted.

(Bloomberg) -- Tiff Macklem will succeed Stephen Poloz as head of the Bank of Canada, as the government opted for a veteran of the 2008-2009 financial crisis to deal with the economic fallout from the pandemic.Macklem, currently dean at the University of Toronto’s business school, was selected as governor at the Ottawa-based central bank beginning June 3 for a seven-year term, according to a joint statement from the finance department and the Bank of Canada. The appointment is redemption of sorts for the 58-year-old economist and former Bank of Canada official, who lost his first bid for the top job in 2013 to Poloz.“I’m looking forward to getting into the Bank of Canada, rejoining the bank,” Macklem said at a press conference alongside Poloz and Finance Minister Bill Morneau. “A seamless transition is going to be a first priority and I am confident that we will be able to accomplish that.”Macklem was a key architect of the global response to the financial crisis just over a decade ago, when he served as a top aide to then Finance Minister Jim Flaherty. He was one of four Canadians in the room when Group of Seven finance ministers took the pivotal decision in October 2008 to fully back a banking system that was on the verge of collapse. He also chaired the influential standards committee at the Financial Stability Board that was established to tighten global financial-market regulations.Mark Carney, Bank of Canada governor during the crisis, recruited Macklem in 2010 as his second-in-command, a post he occupied until 2014 when he left to run the Rotman School of Management.Throughout his career as a high-ranking bank official, Macklem has been a strong advocate of the Bank of Canada’s 2% inflation target, and one of his first post-crisis tasks will be to complete a review of that mandate next year. He was an integral part of a previous review under Carney when the central bank formally introduced a degree of flexibility into the target, giving officials more time to reach it if needed. Macklem was also part of a Carney administration that placed greater emphasis on financial stability risks than was given under Poloz.“The government has underscored the institutional stability that has been the history of the bank in recent decades,” Avery Shenfeld, chief economist at CIBC World Markets, said in a note to investors. “For those projecting where inflation will head in the coming years, given the Bank’s track record, the 2% target is as good a forecast as any for the post-Covid period.”The choice also represents a victory for Morneau, who has been considering Macklem as a potential candidate for more than a year and may have actively pursued the new governor. Macklem had been reluctant to formally apply for the position, telling friends he was happy at the University of Toronto.“Tiff Macklem brings a deep knowledge of the Canadian economy and financial markets,” Morneau said at the press conference. “He was one of Canada’s leading economic stewards during the 2008 financial crisis, expertise that will serve Canada well as we work to deal with the Covid-19 crisis.”Macklem beat out Senior Deputy Governor Carolyn Wilkins for the job, the fourth consecutive time the top deputy at the central bank has failed to win the promotion. Macklem is the first governor to be appointed from the private sector.Job OneJob one for the new governor will be to steer the economy out of what’s almost certain to be the sharpest contraction since the Great Depression, using a set of policy tools that were theoretical constructs when Macklem was an economist at the central bank.For one, he’ll need to decide whether to ramp up emergency measures. The central bank has pledged to buy at least C$5 billion ($3.6 billion) every week of Canadian government debt, and is about to embark on a similar program to purchase provincial and corporate bonds.Officials have also launched a series of new market operations to inject liquidity into markets -- everything from buying assets linked to credit lines to commercial paper. As a result, the Bank of Canada’s balance sheet has ballooned threefold since mid-March.Macklem could choose to scale up these programs if the situation deteriorates, or broaden them to include riskier assets. He could even veer into direct lending to companies, as the Federal Reserve has done. He indicated on Friday he’s in no rush to move the benchmark rate into negative territory. Yet, the better part of Macklem’s seven-year term will involve cleanup operations. Once the recovery starts, he’ll need to decide how long to sustain extremely accommodative policy before eventually navigating an exit, which may include disposing of the hundreds of billions worth of federal debt the central bank will likely hold once the crisis is over.In fact, given the growing importance of fiscal policy, the biggest change of the Macklem era may be deepening the bank’s relationship with government without giving up control of monetary policy -- a task for which Macklem is probably well suited, having worked in senior roles at both finance and the bank.But for now, he’s likely to stay the course as officials try to limit the damage from the coronavirus.“There are some features of crisis management and crisis leadership that are more universal,” Macklem said. “The need to try to overwhelm a crisis, you need to think beyond the normal responses, you need to restore confidence”The Montreal native had more than two decades of experience at the Bank of Canada, working his way up in the research department through the 1990s before becoming its chief in 2000, then joining the governing council in 2004.He first joined the central bank as an economist in 1984 after completing a Bachelor’s degree from Kingston, Ontario-based Queen’s University and a Master’s in economics from Western University in London, Ontario. He returned to Western to pursue a doctorate, which he received in 1989, before rejoining the bank.Richard Tiffany Macklem goes by Tiff, a contraction of his middle name that was given to honor the family’s doctor. He and his wife Rosemary have three children.(Updates throughout with comments, Macklem’s policy history)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Banks Facilitate Access to Emergency Wage Subsidy Through CRA Direct Deposit

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CIBC announces new loan program with Export Development Corporation to provide liquidity to Canadian businesses

(Bloomberg) -- Canada’s financial system remains resilient even in the face of the Covid-19 pandemic and moves to keep credit markets functioning have been largely effective, though risks remain, according to the Bank of Canada.The country’s largest banks remain well capitalized even in the most pessimistic scenario, though some smaller lenders may struggle, and many businesses, especially in the energy sector, face higher funding costs and potential downgrades, the central bank said Thursday in its annual Financial System Review.Canada entered the crisis with strong banks, the protection of a robust mortgage insurance system and an economy in a solid position, the central bank said. “With these strengths, as well as the aggressive government policy response to the pandemic, the largest banks are in a good position to manage the consequences,” policy makers led by Governor Stephen Poloz said in the 39-page report that nevertheless outlines significant, across-the-board risks to the financial system.Small energy firms, lower-rated companies and some alternative lenders were singled out as potential flash points.It’s the central bank’s first comprehensive statement about the risks to Canada’s financial stability since the economy went into lockdown in mid-March. Since then, policy makers have expanded the bank’s balance sheet by about C$270 billion ($192 billion) in efforts to prevent credit markets from seizing up. Purchases of assets including government bonds, bankers acceptances and commercial paper have been successful and in many cases uptake has declined, the central bank said.Policy ResponseThe bottom line from the central bank is things would have been much worse without the massive monetary and fiscal response. Yet even with that response, the fallout from the economic shutdown will be worse than the 2008-2009 crisis, policy makers said, and the longer the crisis lasts, the worse things could become for households and businesses.“Overall, the Bank of Canada still sees the financial system as resilient. But the longer the economy remains tamped down, or if there are second waves of the virus once restrictions are eased, there could be further strains that require policy makers to take even more aggressive action,” wrote CIBC economist Royce Mendes in a note.Running the more pessimistic scenario from the April 15 Monetary Policy Report, which assumes a second-quarter economic contraction of 30%, the bank finds policy actions combined with payment deferrals limit the rise in mortgage arrears, with the rate of around 0.8% in the second half of 2021. That’s still almost double the peak rate in 2009.Since the Covid-19 shock, higher-risk Canadian firms are finding it difficult to tap U.S. leveraged loan markets, and some alternative lenders have suspended redemptions to cope with liquidity pressures. In addition, other small independent lenders which normally finance small firms “have reported challenging market conditions that, if persistent, could jeopardize the future of their business.”Alternative lenders, such as mortgage investment corporations, have become increasingly important for the provision of credit to households and small businesses, and now account for 1.5% of residential mortgage lending nationally.Households VulnerableThe bank acknowledges that many Canadian households face financial difficulty as jobs have been lost due to Covid-19. A significant share of the labor force is unemployed or underutilized and that will “continue for an unknown period.”The weakness in the labor market, along with physical distancing, have led to a decrease in housing activity. Both housing sales and listings are down sharply. Households may feel even more financially burdened if they are having difficult selling their homes. Most Canadian households see prices declining over the next six to 12 months.Highly indebted households will have a hard time managing income losses from lost employment. About 20% of all mortgage borrowers do not have enough liquid assets to cover two months of mortgage payments.Poloz downplayed concerns the central bank’s role in financing government spending could lead to a loss of its independence. “This government has been unwavering in its commitment to central bank independence throughout this,” Poloz said during a press teleconference in Ottawa. “We’ve behaved in ways which have been completely consistent with our inflation target. The key anchor to all that is the inflation target.”The governor, who steps down next month, cited the adage that central banks have the power to lend, while governments have the power to spend. “That distinction is crucial, and for us, the business of lending really only really has its power when people have confidence in the inflation target and therefore the independence of the central bank,” he said.“The objective is, in the first instance, market functioning. That’s crucial, because the monetary policy actions we’ve taken won’t go anywhere if financial markets were to stay gummed up as they were in early March.”(Updates with economist quote in eighth paragraph, Poloz comments in bottom three.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

TORONTO , May 13, 2020 /CNW/ - CIBC announced today it is recognizing Canadian frontline health care workers who have sacrificed so much to keep us safe during COVID-19 by providing 30 million Aventura points to give these tireless workers a well-deserved break to recharge and reconnect with family. Nominations are open to all Canadians and can be made at CIBCHolidaysForHeroes.com.

CIBC launches Advice for Today, an online resource focused on financial advice and insight during COVID-19

Canadian Imperial Bank of Commerce’s asset-management arm halved its holdings for the pharmaceutical stock in the first quarter. It could buy even more shares of Apple and Microsoft.

Some Canadian banks have frozen new lending for smaller commercial property purchases, in some cases withdrawing letters of intent, as the coronavirus crisis raises concerns about owners’ ability to make payments, mortgage and real estate brokers said. The tighter lending environment will likely result in a rise in distressed sales of commercial properties in coming months as buyers vanish, industry players said. "If you’re a landlord, and looking to refinance, you can’t get that," said Roelof van Dijk, director of market analytics at CoStar Group.

Term loans available starting April 27 to help businesses with working capital

TORONTO , Apr. 22, 2020 /CNW/ - CIBC (CM) (CM) is donating $50,000 to the RCMP Foundation and $50,000 to IWK Health Centre, a leading health centre in Nova Scotia , in response to the recent tragic events in the province. The funding for the RCMP Foundation will support local work in reducing violence and keeping Canadian communities safe. The funding for IWK Health Centre will be earmarked for their Virtual Mental Health Program, which they are working to expand as a result of increased call volume from the public, clinicians and doctors' referrals.