Canadian Firms Hoarding More Cash

Canadian Firms Hoarding More Cash

Privately held, non-financial corporations in Canada are hoarding $630 billion of cash according to the latest figures from Statistics Canada. That’s a rise of $9 billion from the end of 2013 to the end of Q1 2014. Businesses have been criticised for not investing more to help the economic recovery and these figures will increase those calls. In 2012, Bank of Canada governor Mark Carney, now at the Bank of England, referred to this hording of cash as ‘dead money’ and called for companies to either invest it or return it to shareholders to ‘figure out’ what to do with it. Read the full story.