Macklem Says Bank Capital Rule Change Alone Won’t Spark Lending

Bank of Canada Governor Tiff Macklem has stated that relaxing bank capital rules on their own won't kickstart lending or economic activity. This aligns with analysts' skepticism that the regulatory change might not immediately lead to increased lending unless borrowers actively seek out loans. This insight underscores the complexity of economic dynamics and highlights that structural changes alone aren't enough to drive growth; market demand and borrower confidence also play crucial roles.