There are claims that Australia’s banks funding costs are imposing obstacles on borrowers that prevent them from getting a loan.  A non-bank financial group has suggested that money sourced from global credit markets is now priced
considerably higher than it was a few years ago, which means that banks can be very selective as to who they lend to.
If this is the case then essentially banks are cherry-picking potential customers with the best capacity to repay their debt, and are imposing obstacles to prevent those with a bad credit history from securing a loan.
Being rejected for a loan could adversely affect a borrower’s credit rating, and in turn this could also affect them the next time they go to a financial institution to borrow money.