06:52 AM EDT, 10/02/2024 (MT Newswires) -- Canadian households and businesses received some good news on the insolvency front, said Bank of Montreal (BMO).

Consumer insolvencies look to have steadied in recent months to August, close to pre-pandemic levels, noted the bank. Bankruptcies remain historically low, suggesting lenders are working with borrowers to ease the original terms of the agreement.

Even more welcome is that business bankruptcies, which soared in January when the government started requiring repayment of pandemic loans have fallen steadily to within shouting distance of 2019 levels, stated BMO.

This means that surviving companies are relatively healthy and

could remain so if borrowing costs decline further and Canada's economy firms up, according to the bank.