On Wednesday, the National Bank Australia (NAB.AX) said it plans to more than double its lending capital to at least 1bn AUD over the next three years. Earmarked for indigenous enterprises and communities, these funds form part of the First Nations business growth ambition.
Australia’s NAB sets a new 1bn AUD lending target
The NAB announced this move after regulators emphasised the need for better banking facilities for indigenous customers. Australia’s corporate regulator found that banks failed to accommodate First Nations people with low-fee accounts. The gaps identified include better access to finances and quality of life.
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In its press statement, the NAB said it will use a network of bankers across Australia to fund First Nations businesses and communities. Andrew Irvine, the NAB Group Executive Business and Private Banking, indicated this is an ambitious lending target, constituting an increase of more than 140% based on the current amount of 413m AUD. He said:
Businesses play an integral role in strengthening First Nations leadership and creating opportunities for communities to succeed. First Nations businesses are leading the charge by driving self-determination, and rapidly improving financial capability and inclusion.
Kate Russell Source: LinkedIn
The chief executive officer (CEO) of Supply Nation Australia, Kate Russell, welcomed the announcement as it would help to promote a prosperous and sustainable indigenous business sector. She commented:
Indigenous businesses have long struggled with accessing critical capital to grow. Clear commitments from organisations like NAB to do more business with the Indigenous business sector and understand their cultural drivers will create more opportunities for Indigenous businesses to thrive.
