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CORRECTED-Bank of Montreal says not seeing rise in consumer delinquencies after oil slump

Published 2016-04-05, 05:23 p/m
© Reuters. CORRECTED-Bank of Montreal says not seeing rise in consumer delinquencies after oil slump

(Corrects to repeat without unrelated Fintrac alert that was
inadvertently attached)
TORONTO, April 5 (Reuters) - Bank of Montreal's BM.TO
chief executive said the lender was not seeing increases in
delinquencies in its consumer loan book following the slump in
oil prices and forecast struggling oil firms would restructure
rather than fail.
"We're not seeing increases in delinquencies yet. There's
likely salary continuation among laid off workers in the oil
sector. There are many two-earner families. That sustains people
in a downturn," Bill Downe said in an interview after the bank's
annual meeting on Tuesday.
Downe said he expected consolidation in the industry as
companies adapt to the lower oil price environment, rather than
widespread failures.
"The story of the oil patch is much more a story of
restructuring than it is one of failure and default. That means
the strongest companies are going to buy weaker companies," he
said.

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