23 April 2020
Today the Treasurer met with the CEOs of ANZ, NAB, Westpac and the Commonwealth Bank who agreed to bolster their efforts to prioritise any business needing funding to bridge the gap until the first Jobkeeper payments are made in May.
It was agreed special hotlines would be set up to help manage the applications from businesses. Banks would also bring Jobkeeper-related applications to the front of the queue and work with the ATO to accelerate the assessment process.
Banks have already granted more than $700 million worth of loans to businesses to help them through the crisis. The industry has a range of support to small businesses affected by COVID19, including six month deferrals on loans attached to the business, extending existing lines of credit and waiving fees and charges.
“From today banks are bolstering their efforts to fast-track any outstanding applications from businesses seeking funding to help them pay staff until the Jobkeeper supplement is paid in May.”
ABA CEO Anna Bligh
Australian Banking Association CEO Anna Bligh said that banks are working tirelessly to process applications as quickly as possible, however more needed to be done in order to ensure businesses met the deadlines for eligibility for the Jobkeeper program.
“Throughout this crisis banks have worked hard to ensure they keep businesses afloat and keep people in jobs, with more than $700 million already lent to businesses to help see them through the pandemic,” Ms Bligh said.
“From today banks are bolstering their efforts to fast-track any outstanding applications from businesses seeking funding to help them pay staff until the Jobkeeper supplement is paid in May.
“A dedicated hotline will be set up by each major bank to help service the businesses requesting this important lifeline,” she said.
Other ABA member banks are looking to take actions relevant to their own customers.
ENDS
Contact: Rory Grant 0475 741 007
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“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”