Commercial bank almas has announced it is expanding its lending operations by extending its banking franchise to other areas.
The company’s commercial bank lending arm, commercial bank latrory, is also looking to expand its operations, with the company in talks to establish a commercial bank branch in Melbourne.
The commercial bank franchise is designed to provide access to commercial bank customers, provide the flexibility to serve smaller businesses, and help commercial banks to attract and retain customers, according to Commercial Bank Almas’ website.
Commercial bank latrocary said in a statement that it was in talks with commercial banks around the world, including in New Zealand and Australia, to establish the commercial bank in Melbourne, adding that it would “exercise the best endeavours” to “provide an attractive business model and support the growth of our business”.
Commercial bank Almas had announced in November that it intended to expand into other areas, including the banking, financial services and health sectors, as part of its broader commercial bank strategy.
In March, the company said it was also in discussions with a number of major Australian banks to expand their banking franchises.
The announcement came as the Bank of Tasmania and the Australian Prudential Regulation Authority were both seeking to expand commercial bank banking, while the Federal Government announced it would be introducing new regulations to make it easier for banks to establish commercial bank branches.
The Federal Government’s announcement comes after commercial banks were hit with a record $16 billion loss in the financial year that ended September.
Commercial banks have been hit by an industrywide crisis that has seen the number of loans issued drop by almost 80 per cent in a row.
Commercial Bank Latrobe is one of the banks to announce expansion plans, with plans to expand to Sydney and Melbourne.
Commercial Banking Association chief executive Scott O’Shea said commercial banks had a role to play in improving the economy.
“We have been saying this for some time that commercial banks play a role in helping people get their money back, and we’re seeing that in terms of more people getting their money out of their bank accounts,” Mr O’Hea said.
Commercial banking is a key part of the financial services sector, with more than 80 per 100 Australians holding commercial banking licences.
The Australian Prudsential Regulation Agency is also in the midst of examining the commercial banking industry.
The regulator said in May it was working with commercial bank and mortgage providers to develop a national commercial bank code of practice.