Free Trial

MNI BRIEF: RBA Saw No Business Credit Supply Boost From TFF

MNI (PERTH)
(MNI) Perth

New Reserve Bank of Australia research found no evidence that its AUD188 billion Term Funding Facility helped increase credit supply to businesses during the pandemic.

The research discussion paper released Tuesday showed no statistically significant effects of the TFF on bank credit growth for small and medium-sized businesses compared to large businesses, and mixed results when comparing aggregate business growth for TFF-eligible banks against ineligible non-banks. There was no statistically significant effect on aggregate business credit growth for eligible banks that accessed the TFF compared to banks that did not draw down.

However, the RBA said the TFF provided an assured source of funding at a time of considerable stress in the financial system and helped lower banks' funding costs, and any effects on business lending may not be reflected in their results.

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.