Major bank hikes rates on business loans
Bosses at National Australia Bank (NAB) have informed some of the company's business banking customers that interest rates on certain loan packages are set to rise.
They revealed the liquidity margin that applies to a selection of its corporate loans will go up by 20 basis points from July 30th.
The organisation said it has been forced to take the action because of higher funding expenses.
NAB's head of business banking Joseph Healy told the Australian Online that around 30 per cent of the company's business offerings would be affected by the rise.
"As the funding costs go up, the liquidity margin goes up and when the costs come down, so too does the margin," he was quoted as saying.
A recent study by Roy Morgan Research showed that an increasing number of companies are turning to smaller banks when looking for loan deals.
The report discovered that many organisations have lost faith in the nation's major lenders in recent months.
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