In order to prevent further financial crises, regulations have been designed that will specifically hit small businesses and enterprises. This means that lending to such businesses will prove to be more difficult. This is according to Professor Ian Harper who is a partner of the Deloitte Access Economics. He is also a member of the Wallis Inquiry in to the financial system done back in the ‘90’s.

"The biggest loser will be SMEs because large institutions can go direct to the bond market to raise fund," he said after Mike Smith, ANZ Chief, said that the rules that require banks to hold more capital will affect the global economy.

Steven Munchenburg, ABA Chief, does not want generalizations to affect the regulations. However, he also thinks that lending to small and medium enterprises is riskier than residential lending.

"At the moment, there's no evidence that small business is having trouble accessing loans; what demand there is, is being more than met," he said.

According to the Executive Director of the Council of Small Businesses, Peter Strong, what will make lending cash to such enterprises harder are the red tape and processes within banks.

“From what I can gather, it’s going to be about having more money on reserve for business loans, and when there’s a higher risk profile there’s a higher duty of care on the banks which adds to their processes. Because of the theoretical higher risk of the small business loan, it means that their due diligence is going to be more complicated,” says Strong.

Eventhough SME’s do not have access to bonds, there are those few that are able to do so, according to Kevin Davis, Research Director at the Australian Centre for Financial Studies.

“I think there are others ways, with banks packaging up loans to SMEs and securitising them, getting them off the balance sheets that way,” Davis added.