The COVID-19 pandemic has profoundly impacted individuals and businesses worldwide, and Australia is no exception.
As a result of global supply chain constraints, geopolitical tensions, and rising inflation, Australians face a higher cost of living. That makes it challenging for many to make ends meet.
The Australian Banking Association (ABA) has launched a cost of living inquiry to investigate the impact of these factors on Australians and identify ways to alleviate financial pressure.
Recent analyses have shown that the collapse of three central traditional banks, including Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank, has put over 186 banks in the United States at risk of a similar shutdown if depositors decide to withdraw all funds.
This situation underscores the need for proactive measures to stabilize the banking sector.
The ABA recognizes that most customers will likely manage the higher cost of living by adjusting their spending patterns. They may also utilize their accumulated savings or refinance their mortgage.
However, the Association acknowledges that some Australians may find adapting to the changing economic landscape challenging. It urges customers to be proactive and seek the best deal for their banking services.
The rising cost of living is not the only financial pressure facing Australians. Property rent has also steadily increased following the lifting of COVID-19 restrictions.
The ABA encourages citizens experiencing financial difficulty to contact their banks for assistance. The banks have several programs in place, including fee waivers, emergency credit limit increases, and loan repayment deferrals, to help those in need.
In addition to these measures, the Reserve Bank of Australia and the Department of the Treasury have been engaging in private discussions with executives from Coinbase about the future of crypto regulation in Australia.
This move highlights the importance of innovative solutions in navigating the ever-changing financial landscape and ensuring the banking sector’s stability.
The ABA’s cost of living inquiry underscores the importance of taking a holistic approach to addressing Australians’ financial challenges.
Through proactive measures and innovative solutions, the banking sector can work towards ensuring the stability of the Australian economy and easing the burden on its citizens.