The banking industry is coming under greater scrutiny after The Newsport was told the Big 4 banks had "lost all confidence" in Port Douglas.

With the recent closure of another four retail outlets in Marcossan Street alone, businesses carrying large amounts of debt face a bleak future.

Federal Member for Leichhardt Warren Entsch said he was well aware of the numerous challenges faced by businesses in both Port Douglas and Cairns. 

Mr Entsch said he has been in contact with John Williams, the Nationals Senator for New South Wales, who earlier this year launched an inquiry into the dubious practices of the big banks – starting with Bankwest and the Commonwealth Bank of Australia.

“I’ve asked Senator Williams to expand the inquiry because there are major problems up here with the big four banks,” Mr Entsch said. 

“I’m aware of significant changes to the Loan Valuation Ratios, which used to be around 80:20 (where banks lend up to 80% of the value of the business) but have now been reduced to about 60:40.

“The banks are putting huge pressure on businesses - these poor buggers have never defaulted but the banks are getting in their tame valuers with instructions as to what values they want.

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“Then they’re going back to the borrowers and saying “Sorry, things have changed, your values have dropped, you have to put in the extra cash or else”.  And then, to add insult to injury, they send them a bill for the valuation!"

Mr Entsch said Senator Williams will soon be hearing firsthand the challenges faced by businesses in the Far North.

“Senator Williams is coming to Cairns and I’ve organised for him to meet with several big businesses that have had some terrible experiences with the banks. 

"These are big failures we’re talking about – the banks have played a very significant role in forcing the demise of some of the region’s landmark businesses.”