Businesses Express Robust Growth Aspirations - NAB
(25 November 2021 – Australia) NAB’s Head of Business and Private Banking, Andrew Irvine, has proclaimed that he views the resilience of Australian businesses as ‘incredible’ since his departure from Canada in the midst of the COVID pandemic in 2020.
The Melbourne headquartered Bank reported business lending surged seven percent in the nine months to the end of Q3 2021.
NAB’s business bank head believes most small businesses would also be able to cope with slightly higher rates than the addiction to record low rates suggests. The group continues to fend off a stern challenge from CBA to win its mantle as the largest business lender in Australia as the group increased its share business lending modestly over the last financial year according to the latest APRA monthly banking statistics.
“As Australia is moving to more of a knowledge-based economy with more innovation, more cash flow dependent businesses, you are seeing a lot of emerging technology capabilities and innovating” Mr Irvine commented.
“I think there’s so much more we can do to continue to innovate and provide different sources of funding where it makes sense. So I would like to see the total mix of my book shift on the margin away from property-based lending” he added.
“While business owners wouldn’t welcome interest rate rises, they would be well-placed to absorb them in the 100-200 basis point range. If rates were to rise much more significantly it would be more problematic. But this recession has been very different from past economic events.”
“Cash balances are very strong and typically that’s not the case. There’s very significant liquidity in the system and asset prices have increased versus decreased.”
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