Major banks reduce their legal powers over SME customers

National Australia Bank, ANZ Banking Group and Westpac Banking Corp have followed Commonwealth Bank in removing “non-monetary default” clauses in loan contracts for small business customers borrowing less than $3 million, in the wake of the report into small business lending by ombudsman Kate Carnell.

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While CBA and NAB’s changes apply to both existing loan contracts and new contracts, the changes by ANZ and Westpac only apply to new contracts, or when customers seek to renew or vary an existing contract.

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Read the full article on Australian Financial Review.

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