Some of the major banks are yet to cut business loans, despite almost immediately slashing variable home loans rates after the Reserve Bank cut the official cash rate by 25 basis points last week.
The situation has drawn criticism from opposition business spokesman Bruce Billson, who told SmartCompany the delay deserves more attention that it is currently receiving.
“The great concern I have is just how mute the Government generally and the treasurer and small business minister are about small business lending rates,” he says.
“My aim is to elevate the interest in this subject, but it’s not attracting the level of attention that other rate movements do. Finance is the oxygen for business and enterprise, and if they’re paying more than they should… these have significant implications for SMEs.”
However, there has been some movement. The Commonwealth Bank confirmed today that its commercial lending rate has been cut by 25 basis points, while NAB also confirmed it had dropped its commercial lending rate by 20 basis points.
But NAB also explained that its commercial lending book is made up of a number of different products, and that some of these are subject to market pricing and other pricing mechanisms.
ANZ confirmed with SmartCompany this morning its commercial lending rates are currently under review. Westpac was also contacted this morning, and its response will be made available once it is received.
Billson says he has been speaking with the banks to see if they could be more forthright about releasing business data, but feels as if “responding promptly wasn’t their normal mode of operation”.
“There is a fog around detail, there is a lack of detail, and a lack of analysis here. And I think getting that information is quite crucial.”
“I’ve been asking what they can share with the broader community about what’s happening with small business lending. But it’s difficult… and hopefully it will become more accessible.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
