Question: How is the government helping to keep credit going?

Answer passage (source: Australia):
page_title: Supporting the Flow of Credit
section_headers: Australian Prudential Regulation Authority - Ensuring banks are well placed to lend
section_content: The Australian Prudential Regulation Authority (APRA) has announced temporary
changes to its expectations regarding bank capital ratios. The changes will
support banks’ lending to customers, particularly if they wish to take
advantage of the new facility being offered by the RBA.

Australian Prudential Regulation Authority (APRA)


Reviewer feedback on this answer:
The question wants to know about credit restrictions and this response is talking about changes in capital ratios. This is not answering the correct question
This provides a brief summary of a program for bank customers looking for credit, but does not give details.

Reviewer ratings:
Could be Improved
Could be Improved

Answer passage (source: Australia):
page_title: Coronavirus SME Guarantee Scheme - supporting the flow of credit
section_headers: Allocation principles for the Coronavirus SME Guarantee Scheme
section_content: The Commonwealth will initially allocate the majority of the total $40 billion
guaranteed loan allocation following an expression of interest process.
The Commonwealth may allocate the guaranteed loan allocation on the basis that
some or all of the allocation must be utilised, or expected to the utilised,
by a specified date.
For example, if a large lender were to seek a $8 billion allocation, the
Commonwealth may provide an allocation to a lender of:

$6 billion on an unconditional basis; plus
$2 billion on a conditional basis, to be available only if the unconditional component is utilised, or expected to utilised, over the six month period.

The Commonwealth will in its discretion re-allocate unused conditional
allocation amounts as required.
Lenders should provide information to Treasury which they consider appropriate
to support their application.
Treasury may request further information from lenders to support their
application. Lenders should be in a position to provide additional information
if requested, for instance:

the lender's expertise extending SME credit on an unsecured and secured basis;
the lender's organisational capacity to quickly extend SME credit (using current business portfolio size and market share as a proxies);
the implications of lender’s proposed allocation in terms of percentage and absolute growth in their business lending portfolio;
the lender’s financial strength and the robustness of the lender’s credit risk management framework; and
for mid-sized and smaller banks, and non-bank lenders, the lender’s ability to meet underserviced regional areas or other specific needs.

Non-bank lenders may submit expressions of interest. However, such
applications will be subject to additional scrutiny compared to bank lenders,
which are licenced and supervised by the Australian Prudential Regulation
Authority (APRA).
The Commonwealth is unlikely to grant an allocation to non-bank lenders or
other entities with:

less than $50 million in assets, and/or
limited pre-existing SME lending experience.

The Commonwealth will make allocation decisions at its discretion, taking into
account:

the factors referenced above;
the total quantum of all lenders' requested allocation at that point in time;
the benefit of promoting competition by mid-sized and smaller banks, and non-bank lenders.

The Commonwealth will consult with APRA in relation to expressions of interest
received from ADIs.

Reviewer feedback on this answer:
The answer provides lots of detail on a government loan program and how it is structured.
This is a very thorough detailed response about how the supplemental loans are being allocated and the steps needed to take. This says who can apply and who can lend. A very good response

Reviewer ratings:
Excellent
Excellent

Answer passage (source: Australia):
page_title: Supporting the Flow of Credit
section_headers: Quick and efficient access to credit for small business
section_content: The Government is cutting red tape by providing a temporary exemption from
responsible lending obligations for lenders providing credit to existing small
business customers. This reform will help small businesses get access to
credit quickly and efficiently.

Reviewer feedback on this answer:
It provides one example of how the government is helping to keep credit going, in this case to small businesses.
This is a pretty good response although lacking in detail for the most part. It says that the government is cutting red tape to give small businesses access to credit. Decent answer

Reviewer ratings:
Acceptable
Acceptable