Inquiry into small biz lending coming soon

18/12/2009

The Opposition Leader Tony Abbott yesterday announced the Coalition would push for a Senate inquiry into restrictive lending practices by banks on small business financing.

“There are enormous numbers of small businesses . . . who are effectively being denied capital because the banks are refusing to lend on reasonable terms to good businesses that have been their customers for a long time.

"Banks have been given a lot of support by the Rudd government. Ultimately, thanks to the Rudd government, the taxpayers of Australia now stand behind the banks. I'm not saying that's a bad thing.

"Obviously we did need to solidify the banks at the height of the global financial crisis. But in return for that support, they have a very heavy social responsibility and part of that social responsibility is ensuring that small business can remain the engine room of our economy," said Mr Abbott.

Commonwealth and NAB spokesmen said the big banks had grown their lending to small businesses.

"We need to be very cautious about these high blown claims that banks aren't lending to small business. It is simply not true," said David Bell, chief executive of the Australian Bankers Association.

Source: The Australian

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