Banking Review

In pursuit of profit

If banks don’t chase small business for loans it will leave a big dent in their profits

BY CHARIS PALMER

The need for increased competition, the reinstatement of a Commonwealth Development Bank to boost business lending, and the possibility of Australia Post entering the business lending market have featured heavily in Senate Economics Committee hearings forming part of an inquiry into access of small business to finance.

Recent research conducted by the Australian Industry Group revelaed more than one in four (25.8 per cent) of small business respondents see availability of credit as a negative influence on their business outlook for the next 12 months.

Yes the Australian Bankers’ Association, and many of its members, argue there has not been a decline of lending to business during the course of the global financial crisis.

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