The results of a new survey conducted by DBM consultants suggests that borrowing plans of SME’s have fallen in direct response to the growing differential between official interest rate, and what is being charged by the major banks.
The survey also suggests that growing dissatisfaction with banking, expressed by all businesses, following a rise in satisfaction which occurred last year.
“Wider lending margins were closely associated with a fall in the number of businesses saying they were looking to take out additional lending products and an increase in the number of businesses seeking to replace existing lending,” DBM managing director Dhruba Gupta said.
“So while the banks’ lending margins have improved, they appear to have come at a cost of fewer businesses looking for new loans and more existing customers looking to replace their current lending.”
The results of the survey come at a time when ANZ led the big four banks in raising its interest rates out of synch with the Australian central bank, which held interest rates steady.
Despite the dissatisfaction, the percentage of SME clients who were considering opening a new account declined to 10.4 per cent in November last year, compared to 14.4 per cent measured in June 2010.
Average satisfaction ratings across all market segments for the big four lenders fell marginally in February.