An analysis of the rising inflation and concurrent collapse of Silicon Valley Bank proved that more than 186 banks in the U.S. are at risk of a similar shutdown if depositors decide to withdraw all funds.
The trade association for the Australian banking industry — the Australian Banking Association (ABA) — launched a cost of living inquiry to near study the impact of the COVID-19 pandemic, global supply chain constraints, and geopolitical tensions, and moreover on Australians.
An analysis of the rising inflation and concurrent collapse of three major traditional banks Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank — newly proved that more than 186 banks in the U.S. are at threat of such shutdown if depositors decide to withdraw all funds. The ABA’s inquiry aims to identify ways to ease the cost of living in Australia and the Government’s fiscal policy response.
ABA acknowledged that numerous Australians would struggle to adjust to a higher cost of living, while it may be easier for some, adding that:
“The ABA notes most customers will manage the higher cost of living and their mortgage commitments by changing their spending patterns, applying their accumulated savings to their higher repayments in anticipation of higher borrowing rates, or refinancing their mortgage.”
One of the most significant pressures for banks was when citizens rolled over from a fixed-rate mortgage to a variable rate. still, ABA urged customers to be proactive and ensure they're getting the best deal for their banking services.
Property rent across Australia has also witnessed a steady increase as markets normalized following the end of COVID-19 restrictions. Citizens experiencing financial difficulty can contact their banks and get help, including fees and charges waivers, emergency credit limit increases, and deferral of scheduled loan repayments, to name a few.
Related: National Australia Bank makes first-ever cross-border stablecoin transaction
Alongside this attempt to cushion Australians against rising fiat inflation, the Reserve Bank of Australia and the Department of the Treasury have been holding private gatherings with executives from Coinbase, with discussions revolving around the future of crypto regulation in Australia.
(ARIJIT SARKAR, Cointelegraph, 2023)