After announcements from thee of the big four banks about how they would implement a six-month loan payment deferral for pandemic-affected businesses, the Commonwealth Bank of Australia (ASX: CBA) put forward an idea that could take a lot of rigmarole out of the process.
The bank's streamlined solution involves auto-enrolling tens of thousands of businesses in the scheme, ensuring immediate support for small businesses likely to be most impacted by the coronavirus.
"We welcome today's announcement by the Australian Banking Association (ABA), which benefits 200,000 of the bank's small business customers," says CEO Matt Comyn.
"To ensure immediate support, CBA will also auto-enrol 76,000 of its small business customers into loan deferral arrangements for up to six months from 1 April. This will ensure that $240 million of support immediately reaches small businesses who are most vulnerable in the current environment" he says.
"A digital registration process will be available from Saturday for any home loan customer wishing to defer their repayments. Unless the request for support is urgent, there is no need for customers to contact us before this time. We will also be communicating with our small business customers from next week and giving them the choice to opt out of the auto enrolment process."
Comyn says the ABA's loan deferral scheme will also include all customers with a home loan, therefore providing $10 billion in support to households and small businesses.
Updated at 6:50pm AEDT on 20 March 2020.
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