Bank sentiment down at year end
(8 January 2010 – Australia) Business banking sentiment has finished 2009 well down, according to East & Partners’ Business Banking Sentiment Index (BBSI).
In the final BBSI for 2009, the overall sentiment felt by businesses towards their banks fell by just over one percent during the month, part of a substantial 15.2 percent fall compared with one year ago.
Small businesses in particular felt a deterioration in their relationship throughout 2009, with sentiment falling by 30 percent, while the sentiment of larger businesses remained strong.
"2009 has been a tough year for small business customers, with banks re-pricing and re-evaluating their lending to small businesses", East & Partners’ financial markets analyst, Peter Drennan said.
"The key to the new year will be how banks treat their relationships with small businesses and, in turn, how small businesses react to their banking experiences of the past year", Mr Drennan added.
East & Partners’ Business Banking Sentiment Index is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, $5 to 20 million and $20 to 100 million turnover segments across Australia.
Small businesses in particular felt a deterioration in their relationship throughout 2009, with sentiment falling by 30 percent, while the sentiment of larger businesses remained strong.
"2009 has been a tough year for small business customers, with banks re-pricing and re-evaluating their lending to small businesses", East & Partners’ financial markets analyst, Peter Drennan said.
"The key to the new year will be how banks treat their relationships with small businesses and, in turn, how small businesses react to their banking experiences of the past year", Mr Drennan added.
East & Partners’ Business Banking Sentiment Index is an aggregated rating metric comprising four different measures of customer sentiment – Empathy, Satisfaction, Loyalty and Advocacy.
Each month, East & Partners’ research team conducts telephone interviews with a sample of 750 businesses nationally, providing an in depth study of businesses in the A$1 to 5 million, $5 to 20 million and $20 to 100 million turnover segments across Australia.
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