Morrison Government pressures big banks to help struggling businesses

Concerns have been raised that some Aussie businesses are struggling to get loans while the JobKeeper allowance is being processed.

The Morrison Government has heaped pressure on the big four banks to provide bridging finance for businesses waiting for wage subsidy payments.

The major lenders have agreed to establish a hotline after concerns were raised businesses were struggling to get loans while the JobKeeper allowance was being processed.

Senior cabinet minister Peter Dutton said banks were squandering the opportunity to repair reputational damage following the financial services royal commission.

“We’ve put in place a regime where they can offer that finance and they should,” he told Nine’s Today.

“We need to look at the cases where they’re not, and frankly, I think the banks should be publicly shamed.”

Peter Dutton says banks doing the wrong thing should be shamed. Picture: Mandel Ngan/AFP

Mr Dutton said businesses in his electorate were grateful for support from banks.

“But clearly, there are a lot of cases where that is not happening and we need to understand why. The banks need to step up.”

Under the $130 billion JobKeeper program, the Government will give coronavirus-hit businesses $1500 a fortnight for each employee.

Companies have to start paying the allowance before receiving the payments, with banks urged to help with cashflow shortfalls in the meantime.

Originally published as Morrison Government pressures big banks to help struggling businesses