Bank of Montreal Shutting Down Auto Finance Division, Anticipates Layoffs
Bank of Montreal (BMO) has announced the closure of its retail auto finance business in Canada and the United States, resulting in job losses. The move comes as BMO's bad debt provisions in retail trade increased significantly, indicating growing stress on consumers due to rising borrowing costs. The bank plans to focus its resources on areas where it believes its competitive positioning is strongest. BMO has been expanding in the United States to find new avenues of growth, as the Canadian market remains saturated.