HomeMedia & ResourcesMedia ReleasesCustomer owned banking sector welcomes measures to support lending

Customer owned banking sector welcomes measures to support lending

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Today’s announcements by the RBA, APRA and the Treasurer are welcome initiatives to support lending.

“We strongly support the Government’s message that this crisis is temporary but we need a bridge to get to the other side and we are all part of a team effort,” said COBA CEO Michael Lawrence.

“Customer owned banking institutions exist to serve their customers and their communities and our members will examine all opportunities to back action by the Government and regulators to keep credit flowing to consumers and small business.

“We will continue to analyse today’s package of announcements and consult our members. The RBA’s $90 billion term funding facility is a very welcome initiative for Authorised Deposit-taking Institutions (ADIs) such as credit unions, building societies and mutual banks. We look forward to engaging with the RBA about the operational details.

“The Government’s announcement of $15 billion in funding for small business lending is also very welcome. We note this program is targeted at non-ADIs and small ADIs and we look forward to exploring the possibilities.

“We support APRA’s willingness to show flexibility on capital settings to ensure ADIs are well positioned to continue to provide credit to the economy in the current challenging environment. APRA has indicated ADIs may need to utilise some their current large capital buffers. Customer owned banking institutions are particularly strongly capitalised, with the sector’s average capital ratio of 17% being significantly above APRA’s ‘unquestionably strong’ benchmark of 10.5%.”

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Media Contacts

Ashley Penny
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 431 932 950
Email Ashleycontact-arrow

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