Just in time for the much anticipated Altfi Summit in Sydney next Monday, we’ve updated our business credit stats for the latest RBA figures. A picture is worth a 1000 words.
Since 2007:
Oh and 45% has gone to ‘Other’ – time for a data rethink!
The latest figures on Business Lending from the Reserve Bank of Australiashow that only 10% of new loans in the year to September 2017 were made to SMEs, a growth rate of 4% pa.
Larger loans, mainly to corporates (although not clearly segmented by the RBA sadly), increased by 16% over the same period and accounted for 90% of new loans.
Mid-Sized Businesses got just one sentence in a 45,000 word transcript of a Roundtable Hearing in 2017 kicking off the Productivity Commission's 12 month review of 'Competition in the Australian Financial System'. It was a good sentence though!
One of the major challenges facing Australia today is the lack of a well developed financial system to support the next wave of economic growth.
So the final report of the Royal Commission into Misconduct in Banking has been published.
Australian SMEs / Small to Medium Sized Businesses didn't get much.
Big 4 Bank share prices popped over 4% this morning. They will save a fortune on broker commissions. Remediation penalties were already priced in. Executive option schemes are worth much more today than yesterday.
This week's findings at the Financial Services Royal Commission reminds me of an insightful analysis by Alan Kohler in The Australian two years ago on what is holding business back and the negative effects on our economy. Sadly, our policy-makers seem to be disconnected from the reality of how to manage our economy.
“Banks are basically not lending to those who don’t own a house or are already fully committed on their mortgages, and those who are building houses for investors.
So they are going elsewhere and paying 10-15 per cent more in interest than the banks would charge, except they’re not.
It means the divide between the haves and have-nots (a house, that is) has never been this great.”
The latest figures on Business Lending from the Reserve Bank of Australiashow that only 10% of new loans in the year to September 2017 were made to SMEs, a growth rate of 4% pa.
Larger loans, mainly to corporates (although not clearly segmented by the RBA sadly), increased by 16% over the same period and accounted for 90% of new loans.
