Banks adopting more prudent lending practices
|
|
Banks will be engaging in more prudent business lending practices in the current economic climate, according to Australian Bankers’ Association chief executive David Bell.
Speaking at an ABA and member banks business roundtable in Cairns yesterday, Bell said the current economic conditions will mean that banks will be tightening up on their requirements — in that they may require more information, covenants or new conditions of businesses seeking to refinance or apply for a loan.
“It is important that banks continue to make prudent decisions on lending,” he said. “Obviously it does not make business sense to lend to a customer who cannot repay the loan. We need to remember the vital role played by sound lending in restoring economic growth, and we must work together to get through these difficult times.”
Bell said businesses that are doing it tough should contact their bank to work out a strategy for keeping on top of their loan. He added that many banks have specialist staff that assist customers who experience hardship.
Recommended for you
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
As reports flow in of investors lining up to buy gold at Sydney’s ABC Bullion store this week, two financial advisers have cautioned against succumbing to the hype as gold prices hit shaky ground.
After three weeks of struggling gains, this week has marked a return to strong growth for adviser numbers, in addition to three new licensees commencing.
ASIC has banned a Melbourne-based financial adviser who gave inappropriate advice to his clients including false and misleading Statements of Advice.
