Speaking to The Adviser, a Westpac spokesperson said the major has increased interest rates for its commercial loans by 23 basis points, while its small business loan interest rates have risen by 19 basis points.
The spokesperson said that lending activity within Westpac’s commercial and business banking division has included heightened competition and increased funding costs, which has impacted returns for the bank.
“While we have been disciplined in managing our margins, over the long term, all businesses must deliver sustainable returns,” the spokesperson said.
Furthermore, Westpac has made available two new fixed-rate offers on its business loans, with the bank’s three-year rate now at 3.99 per cent, while its five-year rate is now at 4.99 per cent.
[Related: YBR raises home loan rates]