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24 July 2020
New figures reveal early signs of economic confidence beginning to grow in Australia with lending to small, medium and family businesses increasing by more than $2.2 billion last month.
The new figures support Federal Treasurer Josh Frydenberg’s observation today that there is early evidence of increased economic investment in Australia.
Continued lending to small business between May and June is a further demonstration of the key role Australia’s banks are playing in the recovery of the national economy by helping small and medium businesses get back on their feet.
In total, banks have provided more than $258 billion in small business loans, helping to ensure the flow of new credit into the economy at a time it needs it most.
“These figures show there are some green shoots emerging in our economy and that’s a positive sign.”ABA CEO Anna Bligh
In a further sign that small, medium and family businesses are beginning to feel more confident about their financial future, they are starting to make their loan repayments again, with the value of SME loan repayments on deferral dropping by more than $686 million in June.
ABA Chief Executive Anna Bligh said the new figures showed small businesses were growing in confidence about Australia’s economic future.
“These figures show there are some green shoots emerging in our economy and that’s a positive sign. There’s a very long road, and plenty of hurdles to clear, but it’s encouraging to see small, medium family businesses slowly regaining some confidence,’’ she said.
Ms Bligh said Australia’s banks continue to work in partnership with the Government and regulators to provide business, and all customers, the confidence they need to see us through these challenging times.
“Banks are already showing they are prepared to lend to small and medium enterprises so they can get back on their feet. Our banks understand the key role they play in re-opening our economy.”
Access to credit opens up opportunities and fulfills aspirations. Getting it right requires the right balance between consumer protections and the flow of credit.
Interviewed by AM’s Peter Ryan, ABA CEO Anna Bligh talked about the substantial drop in loan deferrals since their peak during the pandemic, falling from 900,000 to 300,000.