The Australian banking industry trade association, the Australian Banking Association (ABA), has launched cost-of-living research to look closely at the impact of the COVID-19 pandemic, global supply chain constraints, geopolitical and more in Australians.
An analysis of rising inflation and the simultaneous collapse of three large traditional banks, Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank, recently showed that more than 186 banks in the US. risk of a similar closure if depositors decide to withdraw all funds. The ABA's research aims to identify ways to alleviate the cost of living in Australia and the government's fiscal policy response.
The ABA recognized that many Australians would find it difficult to adjust to a higher cost of living, while for some it might be easier, adding that:
“The ABA notes that most customers will manage the higher cost of living and their mortgage commitments by changing their spending patterns, applying their accumulated savings toward their higher payments in anticipation of higher loan rates, or by refinancing their mortgage.”
One of the most significant pressures on banks was when citizens switched from a fixed rate to a variable rate mortgage. However, ABA urged clients to be proactive and ensure they get the best deal for their banking services.
Property rentals across Australia have also seen a steady increase as markets normalized following the end of COVID-19 restrictions. Citizens experiencing financial hardship can contact their banks for help, including waivers of fees and charges, emergency credit limit increases, and deferral of scheduled loan payments, to name a few.
Related: National Australia Bank conducts first cross-border stablecoin transaction
Along with this attempt to cushion Australians against rising fiat inflation, the Reserve Bank of Australia and the Treasury Department have held private meetings with Coinbase executives, with discussions revolving around the future of crypto regulation in Australia.
Open consultation! Today we are publishing the token mapping consultation document. This consultation is part of a multi-step reform agenda to develop an appropriate regulatory environment for the #crypto sector. Read article and send views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
— Australian Treasury (@Treasury_AU) February 2, 2023
Cointelegraph confirmed through an RBA spokesperson that Coinbase met with the RBA's payment policy and financial stability departments in mid-March "as part of the Bank's ongoing liaison with the industry."
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