Banks Put Australians Under Financial Pressure: Australian Banking Association Inquiry Findings 

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As Silicon Valley Bank infamously found out from its sudden inflation and subsequent collapse, more than 186 banks in the U.S. stand to suffer a similar fate if their depositors choose to take out all of their money at once.

To intimately examine the impact of COVID-19, overseas supply chain issues, and other geopolitical matters on Australians’ cost of living, the Australian Banking Association (ABA) – a trade union for Australia’s banking sector – established an in-depth inquiry.

With the surge in inflation rates, three central banks — Silicon Valley Bank (SVB), Silvergate, and Signature Bank — tumbled. As many as 186 US-based institutions are prone to a similar outcome if customers withdraw their money. 

Aiming to relieve Australians from the economic pressures of everyday living expenses, The ABA investigates means to improve Australia’s fiscal policy response.

While some Australians may find transitioning to a higher cost of living more straightforward than others, ABA recognises that many will face financial hardship. 

The ABA notes that most clients can adjust their budget to accommodate a higher cost of living and mortgage payments by shifting their spending, utilising any extra savings towards future loan instalments in anticipation of greater interest rates, or refinancing their home loans,” a spokesperson from ABA said.

Banks felt immense pressure when customers switched from fixed-rate mortgages to variable rates. The American Bankers Association (ABA) advised citizens to become proactively involved and acquire a competitive deal for their banking services.

The property rent market across Australia has seen a stable price surge as the country rebounds from the impacts of COVID-19. 

Those struggling financially can contact their banks to see if they qualify for financial assistance, including fee and charge waivers, emergency credit limit increases, or deferral of loan repayments.

To protect Australian citizens from increasing fiat inflation, the Reserve Bank of Australia and the Department of Treasury have privately met with Coinbase executives to discuss potential crypto regulations in Australia.

To maintain solid financial stability and efficient payments policy, Coinbase met with the Reserve Bank of Australia’s (RBA) departments in mid-March as part of their regular contact with the industry.

The meeting discussed the potential regulations of crypto in Australia and ways to secure a stable price surge as the country rebounds from the economic effects of COVID-19.

Coinbase also spoke with representatives from the Department of Treasury about blockchain technology, digital assets, and how best to protect consumers from increasing fiat inflation.

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