Big four business bankers bullish on loans

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Business bankers at three of the big four banks say they are ready to step up and lend as the nation’s obsession with property shows signs of waning.

The business banking heads of three of the big four banks say there is a huge opportunity to ramp up lending to Australian companies that have under-borrowed but will need financing in coming months as activity accelerated.

“That’s a huge opportunity for the Australian banking system to look at lending on risk characteristics underpinned by transactional account data.Commonwealth Bank’s Mike Vacy-Lyle,He said Australian businesses were “under-indebted” because lenders had relied too heavily on lending backed by collateral rather than on an assessment of cash flows.“We can probably mobilise more money to people that need it and not impact on the credit outcome,” he told the Summit.

Mr de Bruin, who has worked in Canada, London, Singapore and Abu Dhabi, said businesses had done well to manage their supply chain issues, but that they needed support from lenders.

 

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If they’re serious (1) Ring fence loans for every property separately so that *everyone* has to save for a deposit (2) Lower the LVR for every additional property. So 90% for the 1st, 70% for the 2nd, 50% for the 3rd, 30% for the fourth and after that- 100% cash. That’ll fix it

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