Banks to hit up small businesses
By
Andrea Cornish
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8/07/2010 5:40:00 AM
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Small and mid-sized businesses will continue to bear the brunt of higher funding costs, according to a new survey by JP Morgan and Fujitsu Australia.
The survey found that as the cost of funding rises for banks, the pressure on businesses will increase.
About 90% of lending to small and medium sized businesses comes from the major banks. NAB controls the greatest share at 26%, followed by Westpac/St.George at 25%, CBA at 24% and ANZ at 15%.
Small businesses are paying higher rates than the mortgage sector. And while it is profitable for big banks, lending to the sector has tightened over the last two years and the risk of losses have climbed.
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