CIBC chief executive Harry Culham says the bank is set to ramp up lending in sectors deemed critical to Ottawa's economic agenda.Fred Lum/The Globe and Mail
Canadian Imperial Bank of Commerce CM-T chief executive officer Harry Culham says the lender is bolstering financing for businesses as Ottawa injects cash into building major infrastructure.
The federal government and Canada’s bank regulator, the Office of the Superintendent of Financial Institutions, have been seeking ways to encourage more lending from the country’s largest banks to finance major projects and help businesses scale up.
CIBC plans to ramp up lending for energy, agriculture, transportation, small and medium-sized businesses, and other sectors deemed critical to Ottawa’s strategy to reinforce the economy as geopolitics upends global trade.
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“We’re going to lean in very heavily to this whole concept of nation-building, and that involves everything from infrastructure to the other areas,” Mr. Culham said in an interview.
“We have ample capital, we have a really strong balance sheet, and we are positioning ourselves to be very involved in the commercial and business banking part of economic growth over the next years.”
The fall federal budget included several measures aimed at creating competition in the banking sector, and OSFI is changing the way banks treat certain loans, in a bid to make it easier for them to lend to businesses.
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In the past three years, CIBC has increased its corporate and commercial lending in Canada by almost $20-billion.
Mr. Culham is also looking to expand its capacity in Canada’s northern region as the country aims to tap into critical minerals and resources. In March, Prime Minister Mark Carney announced that four northern infrastructure projects, which include new transport and energy options, would be referred to Ottawa’s Major Projects Office for fast-tracked approval.
“The North is another good example where we think we can continue to be very helpful from an economic perspective,” Mr. Culham said. “The North is a very relevant and important area for our country, and we plan to be very involved.”
A key juncture for Canadian businesses looms as the negotiations over the renewal of the United States-Mexico-Canada Agreement on free trade are slated for this summer. CIBC’s clients have adjusted to the new trade environment as they have brokered new deals with global partners, rerouted supply chains and reallocated capital, according to Mr. Culham.
Businesses are “cautiously optimistic” about the ultimate outcome of a renewed trade deal with the United States, he said.
“We’re hopeful that we’ll have some more certainty in the latter half of 2026,” he said.
“I do spend a fair amount of time with government officials, both north and south of the border, and I would say there’s cautious optimism in getting a deal done. It’s better for everyone.”