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Canadian banks scramble to diversify amid low rates Add to ...

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Uncertainty over interest rates is buying Canada’s banks even more breathing room this earnings season.

For nearly two years, the big question mark for Canadian lenders has been over their prospects for loan growth. Every quarter, investors and analysts raise concerns that the good times are coming to an end. This time, the worries aren’t as widespread. Deflation concerns have persuaded the Bank of Canada to stand pat on rate hikes, helping to send bond yields lower.

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