Financial advisers with clients working towards purchasing their first property or starting their own business need not be too concerned with tightened lending policies post-Royal Commission.
Speaking at the Financial Standard Chief Economists Forum in Sydney recently, Deloitte Access Economics partner Nicki Hutley said talk of weaker credit market numbers is just that.
"Credit market numbers are growing at a slower pace, but it is still growing," she said.
While there has been significant adjustment in lending to property investors, owner-occupiers are still getting loans, Hutley said.
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"The banks want to lend, that's how they make their money. They might want to lend more prudently, but they still need to keep lending," she said.
One of the positives to come out of this, she added, is that business lending is actually starting to tick up and is now growing ever so slightly ahead of housing lending.
"To have better balance in banking portfolios is actually a good sign for the economy; they're not putting all their eggs in one basket," Hutley said.
This is backed by news today from Commonwealth Bank that it is introducing same day decisions on simple business lending. It will be available from March for unsecured business loans up to $250,000.
It is also removing business banking fees and increasing the availability of small business specialists. Better support for businesses experiencing financial hardship will also be made available.
Back on property, Hutley said the slow in housing construction likely has little to do with Commissioner Hayne's report, labelling it cyclical.
It is slowing but it's not going to throw Australia into a recession or lead to lower interest rates in the next nine to 12 months, she added.