Australian Banks Will Feel Virus Heat Next Year: ANZ Chief

ANZs chief expects banks to feel the worst of the COVID-19 pandemic in the middle of next year.

Shayne Elliott believes the economy will be at its low point between now and the end of 2020, which will flow on to the banking sector.

He expects people to then find their businesses unable to operate.

“We think thats probably more like the middle of next year, when the crisis will start to hit the banks,” Elliott told a Senate inquiry on Sept 4.

ANZ expects gross domestic product to recover in 2022.

Elliott said Australians were continuing to pay credit card debts, while about 84,000 customers have deferred home loans.

CBAs chief Matt Comyn will also appear before the inquiry, to be quizzed on the banks response to households and businesses hit hard by the coronavirus-driven recession.

Committee chair Tim Wilson said banks needed to be held to account over the extent of their support for consumers during the pandemic.

The inquiry is expected to shed light on the consequences of mortgage and small and medium business loan deferrals, and the potential for reform of “responsible lending” laws.

It will also be an opportunity for the banks to update the public on their response to the royal commission into financial sector misconduct.

Treasurer Josh Frydenberg told parliament this week the flow of credit would be critRead More – Source