Small business drives demand for bank loans

The top 500 companies have virtually stopped borrowing and reduced hiring intentions. But mid-market and small business borrowers are still seeking capital from banks. The survey found the 12-month forward borrowing intentions of Australia's top 500 corporates fell to new lows despite confidence in the prospects for global economic growth. A survey by JP Morgan and East & Partners found mid-market companies are borrowing for acquisitions and that smaller companies are more optimistic about the economy than big business.