Bank of Montreal (BMO) will close its retail vehicle finance business in Canada and the US, causing job losses.

The move is due to a rise in retail trade bad debt provisions, indicating consumer stress from rising borrowing costs.

BMO is monitoring job-cutted employees and providing help.

Retail vehicle loans grew 34% to C$17.36 billion in Q3, accounting for 2.7% of the bank’s total loans.

Commercial impaired losses in the US rose 10 basis points due to a high retail trade provision.