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The big banks look set to claw back profit lost on low rate home loans through higher lending charges for business borrowers.
ANZ chief Mike Smith reportedly told a group of 100 business customers last week that ANZ’s business loan margins would expand for the foreseeable future, The Australian reported today.
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Higher funding costs as well as the repricing of loans to reflect the greater risk of current economic conditions were given as reasons for the higher lending charges.
Business lending rates already remain considerably higher than home loan lending rates. While the major banks’ margins on home loans are currently around just 0.75 per cent, business loan margins are already in excess of 2 per cent.
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