Banks have a range of options to help customers
17 November 2020
New data released by the Australian Banking Association reveals the number of deferred loans has fallen below 300,000 – a reduction of almost 70% since the peak earlier this year.
The data shows that the economic recovery is gathering pace.
“This is an encouraging sign that most Australians are through the worst”, said Australian Banking Association CEO, Anna Bligh.
“Australian banks have played a major role in carrying the economic burden of the pandemic for their customers. The good news is that the majority are now bouncing back as they restart their loan repayments”, she said.
At the peak of the pandemic, more than 900,000 loans were deferred by Australian banks, the majority (803,000) by the seven largest banks.
“Australian banks have played a major role in carrying the economic burden of the pandemic for their customers. The good news is that the majority are now bouncing back as they restart their loan repayments”ABA CEO Anna Bligh
According to the latest data up to November 4, home loan deferrals by the seven largest banks are down to fewer than 145,000.
Total business loan deferrals have fallen to fewer than 73,000. SME loan deferrals are down to just over 65,000.
The number of loans on hold is expected to fall further in coming weeks as more reach the end of their six-month deferrals.
|24 June 2020
|4 November 2020
|Business loan deferrals
|Of these: SME deferrals
|Mortgage loan deferrals
|Of these: Home loans
“It’s great to see a lower than expected number of people needing to extend their deferral period.”
Banks continue to work directly with customers who are still in financial difficulty.
“Don’t wait till you are in over your head, talk to your bank, they’ll help you find a way through this. Don’t tough it out on your own”, Ms Bligh said
The value of deferred loans by the seven largest banks has now fallen below $100 billion – down to $86 billion. This figure peaked at more than $250 billion in June.
Value of loan deferrals 29 April – 4 November 2020
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