Aussie banks plan to sell off business loans
Companies throughout Australia have been wary of securing finance from the nation's banks, mainly due to the uncertainty surrounding interest rates.
The strength of the Aussie dollar is blighting many organisations, as people down under can buy cheaper items from abroad and trading conditions have remained tough.
Banks have also suggested that intense funding pressures have made it more difficult to offer attractive business loans.
As a result, the nation's major institutions have decided to sell syndicated corporate loans to funds for the first time, Reuters reports.
In the past, banks have generally kept high quality loan deals on their books, but this is no longer cost effective.
National Australia Bank is the most prominent business lender in the country and executive general manager for capital markets at the firm Steve Lambert said this landmark action was much needed.
"These assets when sold will take some funding pressure off the banking system and free up banks' lending capacity," he was quoted as saying.
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