[F7] Business lending rates

F7 BUSINESS LENDING RATES

Data are compiled based on monthly returns collected by APRA from banks and registered financial corporations that have $2 billion of business credit or more. This threshold captures over 95 per cent of total business credit.

Due to the nature of these data sources, these rates are indicative only and are likely to be regularly revised. The RBA continuously reviews a variety of sources for interest rate data and may make changes to the series provided here as a result.

Data are not break adjusted.

Data reported in this table are weighted averages of interest rates reported by each lender participating in the Economic and Financial Statistics (EFS) collection, and measure the interest rates paid by resident borrowers.

Data are for the weighted average interest rate on loans, finance leases and bill acceptances to businesses. They exclude reverse repos.

Interest rates for finance outstanding are weighted by the value of finance outstanding reported by each lender participating in the EFS collection.

Interest rates for new finance funded in the month are weighted by the value of finance funded in the month by each lender participating in the EFS collection.

A loan or finance lease is considered funded once any portion of the funds is made available for the borrower to draw down according to the terms of the contract.

For all data prior to April 2023, reporting entities applied common definitions of business sizes. A business was classified as small if the reporting entity had exposure to the business of less than $1 million and the business had turnover of less than $50 million. A business was classified as medium if the reporting entity had exposure to the business of $1 million or more and the business had turnover less than $50 million. A business was classified as large if it had a turnover of $50 million or more. 'Exposure' refers to all liabilities that a borrower has owing to the reporting entity. From April 2023, ADIs using the internal ratings-based approach to credit risk report business lending consistent with the business size definitions in APRA’s Prudential Standards APS 112 and APS 113. Business size definitions for other reporting entities are unchanged.

For definitions and inclusion criteria for each series, please see Australian Reporting Standard ARS 742.0, available at https://www.apra.gov.au/absrba-business-credit-stocks-flows-and-interest-rates