The Reserve Bank is optimistic that lending to businesses will pick up as the economy continues to recover.
Speaking at a financial services forum, RBA assistant governor Guy Debelle said that the decline in credit outstanding to businesses this year had been due to both demand and supply factors, but that lending to businesses would pick up over the next few months.
“As confidence returns, one would expect to see business credit growth pick up again,” he said.
He added that the tightening supply of credit in recent months was down to the fact that banks were preparing for a much worse economic outcome than had actually happened.
People who read this, also liked:
Small business unhappy with banks
Economy recovering faster than expected