Big four to ramp up business lending
Article Category: Loans & Lenders
By www.mortgagebusiness.com.au, 26 October 2009
The big four banks are gearing up to lend more aggressively to medium and large businesses as the economy shows signs of recovery according to The Australian Financial Review.
The major lenders are seeking to take advantage of surplus capital and improving corporate growth prospects.
NAB’s group executive of business banking Joseph Healy said he expects corporate demand for credit to remain fairly stable next year, prompting a tightening in pricing and more competitive rates as the banks fight it out for the small pool of corporate borrowers.
Mr Healy also said the banks would compensate for tepid demand next year by growing their loan books through stealing additional market share from investment banks, regional’s and non-bank financial institutions.
Loans to non-financial companies rose in August for the first time in four months, according to the Australian Bureau of Statistics.
Total loans rose to $486 billion in August from $481 billion.