Banking News

Banks Implement New Phase of COVID-19 Support - ABA

Banks Implement New Phase of COVID-19 Support - ABA

(Australia – 18 February 2021) Australian banks are entering the next phase of COVID-19 support, as automatic loan deferrals come to an end and demand for extensions falls the Australian Banking Association (ABA) reports.

New data from Australia’s largest banks shows that nine out of ten deferred loans have resumed repayments. Just five percent of deferred business loans and 13 percent of deferred housing loans are yet to resume repayments. While this is an encouraging sign of recovery, it’s clear that there are still Australians who need assistance to get through the pandemic.

As deferrals and government support measures wind down, banks are reassuring their customers that continued tailored support is available to those who are still struggling. As more customers resume repayments, banks are working directly with those in hardship on an individual basis to find the right solution. 

“Every customer is different. Banks are taking a careful and measured approach that takes into account every customer’s individual circumstances. This is about ensuring that no customer is left in the dark as we emerge from the pandemic. It represents a compact between banks and their customers as we navigate the uncertain path ahead” stated ABA CEO, Anna Bligh.

“Australian banks will continue to help customers and businesses turn the corner after the pandemic, while providing a fair and compassionate approach to those who can’t get back on their feet” Ms Bligh added.

Loan Deferral Statistics

At the peak of loan deferrals in June 2020, Australia’s banks had deferred almost one million loans.  

At January 31, total outstanding deferrals are just 9% of all loans that were deferred.  

Just five percent of small business loans remain deferred and 13 percent of housing loans.   

From the four major banks, 78,556 loans remain deferred. 60,562 are housing loans, 11,263 are business loans, and the remainder are a mixture of personal loans and credit cards.

On the books of the 4 majors, just 0.7 percent of all small business loans, 1.4 percent of housing loans, and 0.5 percent of all loans are currently deferred.

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