The latter is consistent with the expansion of the Australian Government's instant asset tax write-off scheme. Also, refinancing by SMEs has been higher over the financial year to date compared with the same period a year earlier (Graph 11). This is consistent with businesses seeking to obtain a better deal with the lower interest rates on offer.
We are, and will remain, an active supervisor. But this can never substitute for management’s role and its responsibility to manage a bank. Nor can it remove a Board’s responsibility to ensure sound policies and practices in relation to corporate governance, effective risk management, as well as the strategic direction of a bank.