The federal government is considering a crisis fund to prop up business following any withdrawal of foreign banks from the Australian market, Treasurer Wayne Swan says.

Mr Swan said the issue was under consideration, but said there had not yet been any such withdrawal of foreign banks.

“What we’ve said is there has been indicated to us that there may be the possibility that some foreign banks will withdraw their funding in the Australian market,” Mr Swan told reporters in Sydney.

“Now if that were to occur, what we have said is we will take any measure that is responsible to ensure the flow of credit to Australian businesses and Australian investors so we can support Australian jobs.

“That’s an issue that’s under consideration and I don’t intend to make any more comment than I’ve already made.”

The multibillion dollar scheme would reportedly be partly funded by the sale of commonwealth bonds and include some money from banks.

The Australian newspaper said it was considered necessary to allow some of Australia’s biggest companies to roll over existing credit facilities.

AAP