Suncorp welcomes the Council of Financial Regulators’ (CFR) considered approach to improve access to credit for small and medium sized businesses across Australia.
The CFR, which takes in senior members from Treasury, the Reserve Bank, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission, reinforced support for maintaining the current borrowing threshold of $3 million to define small business within the Banking Code of Practice.
As a result, Suncorp has pledged $3 billion of new credit for this critical segment which will also provide benefit through increased competition.
Suncorp will also increase its appetite for lending with less security with a focus on cash flow providing greater access to bank credit for small and medium sized businesses.
David Carter, CEO Suncorp Banking and Wealth said supporting small business across Australia is one of the most important things the bank does because when local businesses succeed, local communities thrive.
“We have actively campaigned for the retention of the $3 million threshold and the CFR’s support of this provides greater certainty enabling us to better support small business owners across Australia invest in and grow their business.
“The final step in improving access and price of credit for small business and increasing competition is a level playing field around capital allocation between major and regional banks. We are proud to support Australian farmers and small business owners but when we do, as a non-major bank, Suncorp needs to allocate more capital against these loans.
“More banking competition will help small business owners across Australia invest and grow,” Mr Carter said.
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