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.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
Get help with your investment property
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 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 an appointment is free.
We value your privacy and treat all your information seriously - you can check out