Retail banking and responsible lending during COVID-19 | Practical Law
The sudden and unknown nature of COVID-19 has triggered a global economic shock, and disrupted Australia's economy. As we enter a national state of economic 'hibernation', banks and lenders are grappling with a sudden influx of relief requests from consumer and business customers. Borrowers are rapidly seeking to shed unnecessary expenses to preserve cashflows and survive through the uncertainty. Banks and lenders have been forced to respond rapidly to borrowers, and to the new economic stimulus packages. A sustainable response must strike a balance between demonstrating compassion to borrowers, maintaining capital adequacy and avoiding exposure to future regulatory risk.