At a seminar organized by the industry, Craig Emerson, Federal Small Business Minister argued that the perception in the industry towards SME lending is much worse than reality. He feels that the market conditions are better than being anticipated.

He was speaking at a roundtable organized by CPA Australia. The event was also attended by lot of small business and banking chiefs. He called on various heads to take steps to ensure funding for SMEs. He stressed that Government will undertake measures to encourage more funding to business and also increase competition in the banking sector. But he maintained that Government cannot introduce a specific guarantee for SME loans.

The meeting also examined other measures to increase funding for the industry. But some experts felt that Government backed measures may not achieve much. It was also felt that Government should not try to become a banker.

It was felt that it would be better if more foreign banks are allowed to come to Australia. Increasing competition in the banking sector would also help to improve the situation.

Some feel that providing banks with more and easier access to capital is also the need of the hour and should be actively considered.