NAB pushing for corporate bond market: report

Lambert warns banks need to find alternative funding sources to lend to businesses.

Steve Lambert, executive general manager of debt markets at National Australia Bank Ltd, has warned banks may not have the funds to lend to businesses in the face of stronger credit demand because of global rules requiring lenders to hold more capital, The Australian Financial Review reports. 

According to the newspaper, Mr Lambert stressed the need for alternative sources of funding to be found, as NAB launched a report on the development of a corporate bond market as a "viable funding source for companies".

"There is a concern the banks have got that with the new regulatory regime they are facing, when credit demand again picks up in the economy, the ­traditional way of funding Australian corporates we think is under threat," Mr Lambert said, according to the AFR.

"The traditional way is for the banks to fund them."