Lenders accuse big bank of lowering standards

ANZ has been accused of lowering its lending standards, with major bank rivals claiming it is ­taking on extra risk to win new business customers.

According to the Australian Financial Review (AFR), NAB chief executive Cameron Clyne claimed last week that at least one ‘unnamed’ competitor was weakening its credit standards after the major lender’s market-leading business bank lost market share.

Sources at two banks have both told the AFR that ANZ is acting the most aggressively in the business lending space.

“Conditions in the market are resembling pre-GFC appetite for risk,” said one source.

“We’ve seen ANZ in particular be very aggressive on pricing and credit terms in the SME business market, particularly for commercial real estate.”

APRA and the Reserve Bank of Australia have both issued recent warnings to banks, telling them not to take extra risk in a low interest rate environment where demand for business loans remains subdued.

ANZ chief Mike Smith said the accusations are untrue.

“We haven’t lowered our standards, in fact over the last few years we’ve maintained credit standards very well,” Smith told the ABC on Sunday.

It is understood ANZ called in an external auditor earlier this year to conduct a review of its loan book.

ANZ chief risk officer Nigel Williams told analysts at its profit briefing last week that the bank had conducted a review by state and by business sector and was aware of the claims being made by its competitors.

“The new business that’s come on in that commercial and corporate business is the same or better quality than our existing book,” he said.

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : rockville , st peters , torrensville , freshwater , nightcliff

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here