Australian Prime Minister Kevin Rudd has asked Australia's big four banks to create a temporary pool of funds to lend to carbuyers, the Australian newspaper has reported here. Former CBA CEO David Murray is said to be Rudd's envoy to the banks on the issue, although Rudd met with banking industry leaders last Thursday to float the idea. Fears are growing that as many as 40% of Australian car dealers will have to close because of a shortage of credit in the wake of the withdrawals of GE Finance and GMAC Financial Services from the car lending market in Australia. Ford Credit has also tightened its lending. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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