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Banking industry continues support for struggling Australians

  • February 19 2021
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Borrow

Banking industry continues support for struggling Australians

By Cameron Micallef
February 19 2021

The banking industry has announced that it will continue to support Australian mortgage-holders who have been negatively impacted by the COVID-19 pandemic.

Banking industry continues support for struggling Australians

Banking industry continues support for struggling Australians

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  • February 19 2021
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The banking industry has announced that it will continue to support Australian mortgage-holders who have been negatively impacted by the COVID-19 pandemic.

Banking industry continues support for struggling Australians

The Australian Banking Association (ABA) has put together “specialised hardship teams” offering support to each customer on a case-by-case basis. 

The newly created team will support the 9 per cent of loans still deferred, comprising of 5 per cent business loans and 13 per cent 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.

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On the books of the four majors, just 0.7 per cent of all small-business loans, 1.4 per cent of housing loans, and 0.5 per cent of all loans are currently deferred.

According to the ABA, its specialised teams have extensive experience working with customers in financial difficulty due to the loss of a job, a relationship breakdown or many other common causes of financial difficulty. 

“Every customer is different. Banks are taking a careful and measured approach that takes into account every customer’s individual circumstances”, said Anna Bligh, CEO of the Australian Banking Association.

“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.”

As part of this support, banks have developed an industry-wide, consistent approach to hardship and a new online tool to guide customers in financial hardship and improve transparency. 

“Customers can expect a thoughtful and compassionate approach, with clear and transparent explanations, regardless of who they bank with. This step-by-step guide will help customers navigate the path out of the pandemic,” Ms Bligh said.

Banking industry continues support for struggling Australians
Banking industry continues support for struggling Australians
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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