APRA consultation on treatment of loans impacted by COVID-19

The ABA seeks clarification, but welcomes APRA’s approach by requiring a credit assessment to be ‘appropriate’. The ABA welcomes greater data transparency by regulators, but has a list of recommendations for ARS 923.3.

The ABA believes that deposits are currently protected and could not be bailed in during the resolution process of any ADI.

The response incorporates initiatives on loan deferrals and lending, banking accessibility, and electronic conveyancing and electronic mortgages. These measures were designed to support consumers and businesses through this difficult time and intended to mitigate the impacts of COVID-19 on bank
customers.