Australia's banking trade association - the Australian Banking Association (ABA) - has launched a cost of living survey to closely examine the impact on Australians of the COVID-19 pandemic, global supply chain constraints, geopolitical tensions and more.
An analysis of rising inflation and simultaneous failures at three traditional banks Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank recently demonstrated that more than 186 U.S. banks are at risk of similar failures if depositors decide to withdraw all their funds. The ABA's inquiry aimed to identify ways to ease the cost of living in Australia and the government's fiscal policy response. The ABA acknowledged that many Australians will struggle to adjust to the higher cost of living, but it may be easier for some, adding:
“The ABA states that most customers will respond to higher living costs and their mortgage commitments." One of the greatest pressures on banks is when citizens switch from fixed-rate mortgages to variable-rate mortgages. However, the ABA urges customers to be proactive and make sure they get the best deal with their bank. Property rents have also risen steadily across Australia as markets normalize following the end of COVID-19 restrictions. Citizens experiencing financial hardship can contact their bank and receive assistance, including fee and charge waivers, emergency credit line enhancements and deferment of scheduled loan repayments, among others.
In addition to trying to cushion Australians from rising fiat inflation, the Reserve Bank of Australia and Treasury have been holding private meetings with Coinbase executives to discuss the future of cryptocurrency regulation in Australia.
