CBA plays catch-up on SME loans
The Commonwealth Bank will target the medium-sized business sector with a $2 billion expansion in loans. The bank says it currently has a 14.2 per cent share of the $350 billion business lending market and aims to grow this by half to one percentage point each year. The other three major banks dominate the corporate finance market of 150,000 clients. CBA claims to have 12-13 per cent of this market. It has a lot of catching up to do, according to its head of institutional banking, Michael Ullmer. Competition in business lending has increased markedly over the past year or so, he said, with regional banks Suncorp Metway and St George actively pursuing customers.