Big banks

theBankDoctor turns Whistleblower on NAB

theBankDoctor turns Whistleblower on NAB

Every now and then something happens in our lives that challenges us to take a stand. This happened to me in 2018 when out of the blue I received a phone call from Roly Newman, a former client who I had not seen since my days at Bank of New Zealand (BNZ) some thirty years […]

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Will SMEs seek to borrow in 2021 & will banks be prepared to lend? And what role should government play?

Will SMEs seek to borrow in 2021 & will banks be prepared to lend? And what role should government play?

According to the RBA, lending to SMEs remains flat and demand by SMEs for credit is subdued.This is despite record low interest rates which the RBA says it won’t be looking to increase until 2024. So why aren’t more small businesses taking advantage of these rates? Will banks increase their lending. And what role can […]

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Capping the rate on Coronavirus SME loans makes no sense at all.

Capping the rate on Coronavirus SME loans makes no sense at all.

The Government will cap the rate of interest lenders can charge on loans under the Coronavirus SME Guarantee Scheme (SMEG) noting that the move “will prevent interest rate gouging”. Talk about throwing the baby out with the bath water! SMEG has been ineffective in allowing quick access to funding for small businesses that don’t have […]

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The Government is barking up the wrong tree with SME loan scheme “enhancements”

The Government is barking up the wrong tree with SME loan scheme “enhancements”

After three months, just 4 per cent of the $40b available under this scheme has found its way into the hands of SMEs. Recognising this the Government has decided on three enhancements. 1. The term of guaranteed loans can be increased from three to five years. 2. SMEs can now borrow up to $1m from […]

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The COVID-19 economic crisis shows we need a better way to fund  SMEs.

The COVID-19 economic crisis shows we need a better way to fund SMEs.

Many small business owners are already in dire financial straits and sadly it will get worse when the life support provided by JobKeeper and bank forbearance is turned off in September. The Covid-19 economic crisis has highlighted deficiencies in the way SMEs are able to access debt finance primarily through the big four banks. This […]

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The $90b Term Funding Facility for SMEs is a litmus test for the big banks.

The $90b Term Funding Facility for SMEs is a litmus test for the big banks.

The TFF is a timely and essential initiative that could be the key to helping thousands of small businesses avoid bankruptcy. The Government is putting a huge amount a faith in the banks’ ability and willingness to step up to the plate. They can’t compel them to lend but by providing the TFF they have […]

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2020 looms as a watershed year for the big banks.

2020 looms as a watershed year for the big banks.

And after the astounding Royal Commission revelations, we thought it couldn’t get any worse for the big banks! Twelve months ago in my wrap up of the Royal Commission I concluded with the comment “2018 has been an “annus horribilus” for the big banks and 2019 is shaping up as being at least as challenging”. […]

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Kenneth Hayne got it wrong on mortgage brokers

Kenneth Hayne got it wrong on mortgage brokers

In the two weeks since the release of the final report into Misconduct in the Banking, Superannuation & Financial Services Industry, rather bizarrely the most contentious recommendation deals not with bank misconduct but mortgage broker remuneration. This was primarily a Royal Commission into misconduct by the big four banks and they were lambasted by Kenneth […]

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The Royal Commission Report – Short term pain for SMEs should be followed by long term gains

The Royal Commission Report – Short term pain for SMEs should be followed by long term gains

The extensive media coverage of the Royal Commission’s findings contain very few references to the SME sector. This is possibly because the report contains only six recommendations, four of which relate solely to the farming sector. We briefly discuss these recommendations then explain why for the foreseeable future SMEs can expect continued pain before exploring […]

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The Wash Up from the Royal Commission. Part 4 in a 4 part series – “This is the Royal Commission we had to have”

The Wash Up from the Royal Commission. Part 4 in a 4 part series – “This is the Royal Commission we had to have”

This fourth and final article reviews the tumultuous last six months and looks to the future as we await Commissioner Hayne’s final report. But first a quick re-cap. When the hearings began, most of us had little idea of lay ahead. Not so for Commissioner Kenneth Hayne and his team, lead by loyal lieutenants Rowena […]

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