On March 20, members of the Australian Banking Association(ABA) issued a report on a study conducted to investigate the impact of Covid-19 and macroeconomic pressure on the cost of living in the region.
The study aimed to support ABA groups and legislators to develop strategies to address the current economic condition in Australia. Additionally, the study aimed to support the government in developing a fiscal policy that fits real-life challenges.
According to the ABA, the recent fallout of the three leading financial institutions in the US exposes more than 186 banks to a liquidity crisis. The ABA argued that withdrawing investors’ assets from the banking sector would lead to the collapse of key market players in the banking industry.
Australian Banking Association Findings
The ABA report revealed that many Australians were pulled into poverty due to the cost of living. The sudden surge in poverty level in Australia has prompted the regulators to adjust their lifestyle to meet daily expenses.
It implies that the increase in spending denies the consumer’s opportunity to save their assets, increasing the borrowing interest among Australian nationals. The ABA team observed that most consumers are rerouting their assets to settle for their mortgage.
The report has encouraged consumers to support the operation of the banking sector to garner more benefits and opportunities.
Cost of Living in Australia
The financial providers observed increased property value in the Australian market after the Covid-19 pandemic. The increased asset value has prompted banks to provide outstanding customer support by introducing suitable loan repayment methods.
The banks have prioritized adjusting the emergency credit limits, waivers and deferral loan repayment activities to enable the consumer meet their mortgage obligation. The ABA findings on the inflation rates in Australia have obliged the country’s apex bank to collaborate with the Treasury to develop strategies to combat the concern.
Also, the Australian financial watchdogs have been engaging in an embroiled debate with top executives from the leading crypto exchange Coinbase to formulate regulations that match the ever-evolving crypto industry.
In the previous discussion, the Coinbase team worked closely with members from the Reserve Bank of Australia (RBA), including the head of the compliance and finance department. At the meeting, the Coinbase team proposed strategies to harmonize the operation of the decentralized and centralized platforms.