It’s not quite that simple, responsible lending laws do not...

It’s not quite that simple, responsible lending laws do not govern commercial or institutional lending.

Seems to me, there’s two schools of thought on the industry itself:

- The industry will experience exponential growth at some point in the near future, likely due to a significant change just regulatory conditions and ability to sell product both in Australia and Internationally.

- Those who disagree with the premise or short term timeline of the above statement.

NAB would clearly fit into the top viewpoint if they lent $50 million. The above notwithstanding, the institutional portion of the big four banks contributes about a third of the profit for those companies - at the moment that would equate to roughly 1.4 billion - $50 million is not a big deal when it comes to institutional lending, part of their lending book would include a risky portion - to be fair, if the market conditions in the industry change, it may not be the worst punt but equally that $50 million isn’t worth as much to a bank as it is to a retail investor.

The million dollar question with CANN, are they going to be able to make money and become self sufficient as a company quickly enough to really repay their investors. If the Liberals retain government federally - it probably doesn’t bode for the industry.