NAB has signed a memorandum of understanding with state-owned China National Agricultural Development Group Corporation, according to The Australian.
It is China’s biggest agricultural group.
“For Australia’s agricultural sector, our abundance of productive land and high food quality makes us an ideal strategic partner for China’s growing food, beverage and agricultural needs,” said Joseph Healy, the head of NAB’s business bank and Asian operations.
As the mining boom ends Agriculture is a new growth area for banks to lend to.
“It’s a potential growth sector, whereas a lot of their traditional sectors are not growing as strong as they would like,” Morningstar banking analyst David Ellis said in the article.
“The banks are keen to get in there and cement a strong market position.”
Read more here.
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