Westpac says business lending growth is set to slow sharply to between 3 and 4 per cent this year, down from the 14 per cent growth recorded last year, but will still be supported by higher-than-expected net migration this year from the return of international tourists and students.
Amid soft consumer sentiment – which is likely to remain depressed as mortgage repayment costs increase – SMEs should “deplete some of that inventory, and that is an area we will need to watch closely,” he said, given it could reduce demand for working capital. In a strategic move to get more credit to small borrowers faster, Westpac is partnering with Sydney-based artificial intelligence company Rich Data Co and using its machine learning technology to predict customer cash flow.
Businesses also want funds to bring advanced manufacturing processes onshore, he said, also driven by concerns over the security of global supply chains.Such drivers will help to offset more cautious consumers. Westpac’s closely watched index of consumer sentiment, released on Tuesday, rose by 5 per cent month-on-month in January, to 84.3 points.
The banks proved this during the pandemic when well over 90% of the 300 or so billion the government printed went into fuelling the bubble. Bad luck for young buyers!
Banks don't want to lend to businesses. They want more people for housing loans. There is a lot less risk in the government backed housing market.
Yes, we need to pump up the propertyPonzi economy (Westpac profits).