Banks 'may struggle to provide business loans'
Leaders at National Australia Bank (NAB) have warned that lenders across the country may struggle to provide business loans if borrowing levels suddenly recovered.
During a Senate inquiry, chief financial officer at the bank Mark Joiner said that market volatility and the strong competition for deposits among lenders has made it increasingly difficult for companies to gain access to funds, the Australian Associated Press reports.
New figures from the Australian Bureau of Statistics have shown that corporate loan uptake was up in June, as levels of business confidence have grown slightly in recent months on the back of strong economic data.
However, a lot of enterprises have been disappointed that most banks have opted not to lower the interest rates attached to their loans, despite the fact the national cash rate has fallen to 3.5 per cent.
Banking chiefs have blamed this on high borrowing costs and Mr Joiner said: "The Australian banks would struggle to go along with the demand for credit."
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