Aussie credit quality 'has clearly stabilised'

More small businesses are experiencing stress, but Aussie credit quality has stabilised, according to Westpac.

There has been a stabilisation of Aussie credit quality, according to one bank.

Westpac noted that there are now fewer large assets emerging, but there has been an increase in the amount of small companies whose stress levels are rising.

Gail Kelly, chief executive of the organisation - which offers Westpac credit cards - said that overall the firm achieved a "solid" third quarter of the 2010 financial year, as well as an improved relationship with its consumers.

She added: "Customer numbers have grown across all our brands with the average number of products per customer also increasing."

And as the company develops improved technology, it expects the performance levels to get better - and she pointed out that the Australian economy is currently "robust".

These comments come after the Reserve Bank of Australia (RBA) maintained the interest rate at 4.5 per cent at the beginning of the month, while in May Westpac increased its levels by 0.25 per cent to match an RBA rise earlier in the year.

By Nate Sawyer