Mr. Gavin Purtill:

I wish to make some quick points on the matter. In terms of the cost of funds for SMEs, for example, if bank funding is 70% and the remaining 30% is equity, CMU proposes innovative solutions in that space, including venture capital, angel investors and crowd-funding. If they are successful, that should bring down the cost of funds for SMEs.

On the banking side, there has been a consultation paper on securitisation. If that recalibrates regulations around securitisation to make it more attractive and revive the market, whether on capital risk rates or the liquidity coverage ratio on insolvency, then it will allow banks to de-risk and to transfer risk off their balance sheets, which will drive down their cost of funds, and the benefits will be passed on to the consumer. A number of things should lead to a reduction in the cost of funds for SMEs.