Canada’s top banker says too many Canadian companies being too cautious by sitting on large reserves of cash.

With an estimated $500 billion being held by Canadian companies, Carney calls the funds ‘dead money.’

This comes with interest rates at record lows, and with the central bank policy being challenged when it comes to the Canadian dollar.

Carney countered by saying corporate Canada is being far too cautious.

“There job is to put money to work, and if they can’t think of what to do with it, they should give it back to their shareholders,” Carney said.

Carney also said that corporate management may come under pressure.

“Shareholders have a role to play here, if the companies can’t determine what to do with a very large cash pile, give it back to shareholders and they’ll figure out what to do with it,” Carney added.

Carney dismissed the CAW’s call for a lower Canadian dollar, saying it is just one factor in our export numbers.

He instead argued bolstering trade in emerging markets should be a focus for policy makers.