The New Zealand Institute says a $1 billion loan fund announced by the ASB Bank is only a fraction of what's needed to help struggling companies.
The fund has been set up to lend money to companies at below market rates, on condition that they can prove the loan will create or maintain employment.
The New Zealand Institute says $1 billion is a fair investment, but more banks will need to come up with similar ideas.
The business think tank says $143 billion was lent to companies in New Zealand last year.
