Big banks welcome government competition for small end of town

Australia's biggest banks insist they welcome the prospect of looming lending competition from the federal government's proposed $2 billion small business loan plan.

Under the policy unveiled by Treasurer Josh Frydenberg on Wednesday the government will establish a $2 billion securitisation fund which it will use to buy pools of small business loans from smaller banks and non-bank lenders.

The policy aims to improve the availability of loans to small business by boosting the lending capacity of those second tier lenders. National Australia Bank chief customer officer of business and private banking Anthony Healy said the bank, which is the biggest lender to small businesses in the country, supported the government's move to boost competition but it would not sell its loans into the securitisation scheme. "We wouldn't take it up," he said.

Westpac said it was too early to say if it would participate while  Commonwealth Bank of Australia and ANZ did not respond to questions about their involvement by deadline. Read more

Emma Koehn - Brisbane Times - 14 November 2018