Australia's business lending on the rise
Business lending is on the rise in Australia, according to figures from the banking regulator, but an industry expert said the data for March is yet to be indicative of the prevailing trend.
The Australian Prudential Regulation Authority monthly lending figures for March, released on Friday, had shown subdued growth in the credit card portfolios of banks.
According to a related report by smartcompany.com.au, quoting Mr John Hinchy, chief statistician of market research firm DBM, says his preferred measure of lending - Reserve Bank figures - are yet to show an increase in the sector, and the APRA figures are not evidence of an upward trend.
Businesses, according to Mr Hinchy's, have not really taken much loans to expand or upgrade services.
"While the differences between the APRA and RBA series are detailed and technical, the RBA series might offer a clearer picture of total business borrowing," Hinchy said as quoted by the site targeting entrepreneurs.
" ... the RBA series is designed to represent the general economic position of business borrowing, while the APRA series provides a more technical account from the viewpoint of banks of their lending."
RBA figures for March show total credit provided to the private sector went up 0.6percent, while business credit rose 1 percent, from 0.8 percent the previous month. Nevertheless, year-on year data for the period indicate business credit declined by 0.6 percent.
Deutsche Bank and Nomura say business credit is growing, although Nomura's Victor German has warned that banks face competition in the debt market from the bond market, The Australian Financial Review reports.
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