Offshore selling of Australian bank stocks had been overdone in recent months because fears that the home-lending market would collapse were unfounded, JP Morgan said on Tuesday.
The quarterly survey, jointly published by JP Morgan and East & Partners, focused on Australian corporate and commercial banking. It surveyed the top 500 Australian corporates by annual turnover, and a sample of companies with annual turnover in the range of A$20m to A$100m on topics such as future borrowing plans.
One of the key findings of the survey was that small and medium enterprises (SMEs) offered greater lending-growth prospects than the top 500 corporations. Almost 51 per cent of SMEs surveyed indicated that they would borrow additional funds in the coming year.