Loan deferrals top $211bn

According to the latest data from the Australian Banking Association, banks have deferred 703,419 loans worth a value of $211 billion. Mortgages made up a majority, with the banks deferring one in 14 home loans totalling more than $150 billion to assist Australians through the COVID-19 pandemic.

ABA chief executive Anna Bligh said that banks stood shoulder to shoulder with Australians who were suffering as a result of the COVID-19 health and economic crisis.

“Banks are here to support customers throughout the crisis and help the economy on the other side as we recover from the devastating effects of this pandemic,” Ms Bligh said.

“Since this crisis started banks have deferred the mortgage repayments of 429,000 Australian families or a staggering one in 14 of all home loans.

“Australian families who are financially affected by this crisis have had the breathing space they need with a six-month deferral on their home loan repayment while they chart a path through to the other side of this downturn.”

The ABA noted that besides granting six-month deferrals , the banks have also concluded new business loans worth $86 billion, while total loans approved under the SME government-backed guarantee scheme rose to $1.3 billion. 

Banks have also hired 1,500 new staff and redeployed over 2,200 staff to frontline areas such as call centres to help meet the historic surge in demand for support over the last few months.