Falling rates offset by higher fees for business borrowers
The big banks are fighting back against other lenders in the business lending market by cutting margins according to a survey by JPMorgan and East & Partners. While rates have fallen over the last three months, the survey also found that the banks are raising transaction fees. 27 per cent of small and medium enterprises say they are considering switching banks with many saying their relationship with their bank is antagonistic. JPMorgan warns that the margin sacrificing is unsustainable.