Australian Banking Association’s cost of living inquiry reveals bank pressure

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The Australian Bankers Association (ABA), the industry body for Australia’s banking industry, has launched a cost of living study to closely examine the impact on Australians of the COVID-19 pandemic, global supply chain constraints and geopolitical tensions. It was started.

An analysis of the rise and simultaneous collapse of inflation for three major traditional banks—Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank—shows that more than 186 banks in the United States will be forced to close if depositors decide to withdraw. recently proved to be at risk of similar closures. All funds. ABA’s research aims to identify ways and government fiscal policy responses to reduce the cost of living in Australia.

Consumer Price Index, percent change from the same period last year, December 2012-December 2022. Source: ausbanking.org.au

The ABA acknowledged that many Australians have trouble adjusting to the higher cost of living, but it may be easier for some.

“ABA expects most customers to change their spending patterns, apply accumulated savings to higher repayments in anticipation of higher borrowing rates, or refinance their mortgages, resulting in higher cost of living and housing costs.” We are careful to manage our loan commitments.”

One of the most significant pressures on banks was when citizens switched from fixed-rate mortgages to floating-rate mortgages. However, the ABA wanted to be proactive with its customers and ensure that they received the best deals in banking services.

Household savings rate, December 2014 to December 2022. Source: ausbanking.org.au

Property rentals across Australia are also steadily increasing as markets normalize after COVID-19 restrictions end. Citizens facing financial hardship can contact their banks for assistance, including fee and fee waivers, emergency credit limit increases, and postponement of scheduled loan repayments.

Related: National Australia Bank Conducts First-ever Cross-Border Stablecoin Transactions

In parallel with this attempt to soften Australians against rising fiat currency inflation, the Reserve Bank of Australia and the Ministry of Finance have held a closed-door meeting with Coinbase executives to discuss the future of cryptocurrency regulation in Australia. Expanding.

Cointelegraph has confirmed from an RBA spokesperson that Coinbase met with the RBA’s Payments Policy and Financial Stability Division in mid-March “as part of our ongoing engagement with banks and the industry.”