These past weeks have seen a number of banks, showing their support for home buyers and small businesses by assuring them that they are ready to make borrowing easier.
Suncorp pledges $3 billion
Non-major bank Suncorp has promised $3 billion of new credit for small and medium-sized enterprises (SMEs) across the country. In addition, they will make lending with less security more readily available for SMEs.
Suncorp sees small and medium-sized enterprises as a “critical segment” of the country’s economy, and its plan is to assist business owners in regional areas to make their businesses thrive. David Carter, Suncorp CEO of banking and wealth, believes that when local businesses succeed, local communities thrive.
He said, “We are proud to support Australian farmers and small business owners. As a non-major bank, Suncorp needs to allocate more capital against these loans.”
ANZ and NAB
In addition, two of the Big Four (ANZ and NAB) have expressed their willingness to lend when they addressed a recent parliamentary meeting of the House of Representatives Economics Committee in Canberra.
ANZ Chief Executive Shayne Elliott claimed that the ANZ “is ready to lend, especially for housing and small businesses.”
“After a period of perhaps being too cautious, ANZ is easing back towards a sensible equilibrium,” he added amid an increased emphasis on responsible lending following the banking royal commission’s findings of lax lending practices.
NAB Interim Chief Executive Philip Chronican who followed Mr Elliott’s presentation also expressed their willingness to lend by stating that “NAB stands ready to lend to good-quality propositions for both businesses and home buyers.”
“However, the documentary requirements that are now being asked of our frontline bankers are such that it slows the process down and as a result, we are lending less in-home lending that we might otherwise be able to,” Mr Chronican adds. Bankers have reported that the tougher administration of responsible lending laws was decelerating the process of loan applications.
Australians will find it “a little bit harder” to get loans – Mr Elliott
The ANZ chief executive believes some Australians will find it “a little bit harder to either get credit or get the amount of credit that they would have otherwise had in the past or would like.”
When asked if it was due to falling demand or supply of credit by the committee’s chair, Liberal MP Tim Wilson, Mr Elliot said, “If people find it a little bit harder to get credit, they might step back from wanting to invest in their business or buy a home, so I think they’re highly correlated, but I do think banks’ risk appetite has had a significant impact.”
Nonetheless, this is good news for people who are looking to invest in a home or who are wanting to start their own business. If you need guidance and assistance with your loan application, contact the Chan & Naylor Finance Team here. We’ll be glad to help.
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