Banks defer 100,000 loans in one week

by Madison Utley11 May 2020

In just one week, Australian banks deferred an extra 100,000 loans, including approximately 50,000 home loans, to help customers through the COVID-19 pandemic.

As of Friday, 8 May, the total value of loans that have been deferred swelled to at least $200bn.

According to Australian Banking Association (ABA) CEO, Anna Bligh, the newest figures confirm the financial impact of the crisis is still unfolding and that customers will continue to need support from their bank to weather the storm.

“The total value of loans which has been deferred has increased by at least $20bn in just one week,” said Bligh.

“These new figures, released today [8 May], shows banks working overtime to ensure assistance is given where needed to customers who are affected by this crisis."

The updated data, together with “figures not previously reported”, has brought the total number of loans deferred by Australia’s banks as a result of the COVID-19 pandemic to over 643,000, of which approximately 392,000 are home loans.

“The surge in demand for assistance from banks shows that the economic impacts continue to be felt, and by no means is the nation through this crisis,” Bligh concluded.