Shame banks over business finance: Dutton

The Morrison government has heaped pressure on the big four banks to provide bridging finance for businesses waiting for wage subsidy payments.

The major lenders have agreed to establish hotlines after concerns were raised businesses were struggling to get loans while the JobKeeper allowance was being processed.

Senior cabinet minister Peter Dutton said banks were squandering the opportunity to repair reputational damage following the financial services royal commission.

"We've put in place a regime where they can offer that finance and they should," he told Nine's Today.

"We need to look at the cases where they're not, and frankly, I think the banks should be publicly shamed."

Mr Dutton said businesses in his electorate were grateful for support from banks.

"But clearly, there are a lot of cases where that is not happening and we need to understand why. The banks need to step up."

Under the $130 billion JobKeeper program, the government will give coronavirus-hit businesses $1500 a fortnight for each employee.

Companies have to start paying the allowance before receiving the payments, with banks urged to help with cashflow shortfalls in the meantime.

Australian Banking Association chief executive Anna Bligh said workers on the front line were working frantically to help customers.

"The reality is we're up against the clock when it comes to JobKeeper," she told Sky News.

"Banks have agreed that they will ramp up their efforts."

Ms Bligh pointed to $700 million already loaned and more than 500,000 repayment deferrals as evidence banks were helping.

She said systems were being tested by the level of customers contacting them, with one bank taking more calls in one week than they usually would in a year.

"That's an extraordinary avalanche of need and despair in the community," Ms Bligh said.