The monopolies regulator has given approval for banks to continue providing Covid relief to customers as lockdowns impact businesses across Australia.
The ACCC officially authorised the plan proposed by the Australian Banking Association (ABA) that allows banks to work together to help their customers through the pandemic.
Co-ordinated packages such as those put together by ABA have to be authorised by ACCC as they involve banks working in concert with each other, which is typically not allowed due to anti-monopoly regulations.
“In the context of COVID-19 related lockdowns and restrictions, the ACCC recognises that large numbers of businesses and individuals are continuing to experience significant financial hardship,” said ACCC Chair Rod Sims.
“We consider that the ABA’s coordinated packages are likely to assist banks with providing relief to businesses and other customers impacted by COVID-19 restrictions, maintain access to banking services and support financial recovery.”
“Importantly, as well as offering customers the packages covered by the interim authorisation, banks can also individually offer more favourable and tailored solutions to their customers experiencing financial hardship during these times.”
“Without this authorisation, banks would be forced to offer separate financial relief packages without standardisation or consistency.”
The authorisation will last until June next year, and will allow banks to offer vital relief. ABA CEO Anna Bligh said on Monday that more than 20,000 Australians had applied for assistance from their banks across both home loans and business finance since 8 July.
“Lockdowns continue to bite across several states, and banks are again stepping up to help,” she said.
“Support is available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry.”
The majority of applications were in New South Wales, which has been hardest hit by lockdowns, but there are measures in place in South East Queensland and Victoria.
