David Taylor, president & CEO of Pacific & Western Credit Corp. today confirmed that Pacific & Western Bank of Canada has not involved itself in the subprime lending market, and as a result it does not have any direct exposure to risk of loss from this market.

The bank is a niche lender that focuses on providing financing to low risk markets. Specifically, the bank provides financing to public sector entities including hospitals, school boards, and municipalities, and to high quality investment grade corporations.

David Taylor stated that, “The concern over the sub-prime lending market, and the potential tightening of credit conditions, may actually work in the bank’s favour as the spreads we are able to achieve on our securities portfolio and loans to investment grade corporations are likely to increase.”

The bank is is wholly owned by Pacific & Western
Credit Corp.

http://www.newswire.ca/en/releases/archive/August2007/17/c7968.html