THE Newcastle Permanent, Greater Bank and Mutual Bank will extend their loan repayment deferral arrangements for customers hit hardest by the COVID-19 global pandemic.
The move by the Hunter banking trio falls in line with this week's announcement by the Australian Prudential Regulation Authority (APRA) to extend the loan deferral period from six months to 10 months for those in need.
APRA announced on March 23 that, for six months, loans with deferred repayments need not be treated by banks as being in arrears for capital adequacy and reporting purposes. Its latest announcements extends that period to another four months, however extensions will be assessed upon application.
The Perm has assisted about 1200 customers whose home loan repayments were paused earlier in the year, while the Greater has provided support to about 1600 personal and business customers.
The Mutual Bank received about 200 enquiries initially with only 100 going on to require assistance, with more than half of these members returning to their normal repayments after three months' time.
Any extension will cover a maximum period of 10 months from the start of a repayment deferral, or until March 31, 2021 - whichever comes first.
"Through this difficult time, we will continue to support our customers to ensure the most appropriate solution for their individual circumstances," Perm CEO Bernadette Inglis said.
Greater Bank CEO Scott Morgan said that while the pandemic conditions in NSW and Queensland had improved in recent weeks, many customers were still feeling the financial impacts.
