The overall cost of finance for business is ultimately determined by the market, but is made of a number of factors, including the cost of funding for the banks, and the cost of risk and capital. BIS data shows the overall cost for SMEs was stable during the later part of 2009, and in general less than two years ago.
Banks maintain that they have the capacity to meet the demand from viable businesses in the second quarter of 2010 and beyond, and the Government expects them to do so. BIS data show that majority of applications from businesses for financial support continue to be approved.