Moreover, being riskier, the small business loans made by most community banks are priced so much above the loans made by the large banks that the marginal cost benefit to adopters would not be a material competitive factor.
On a different matter, you might recall that at our previous hearing we had a discussion about quantitative easing (QE). Shortly after that I gave a public speech on the issue. Given the Committee’s previous interest in the topic I thought it would be useful to summarise the main points for you. The first is that negative interest rates in Australia are extraordinary unlikely.