The Australian Competition Consumer Commission (ACCC) has authorised the Australian Banking Association (ABA) and the banks to continue to work together on existing COVID-19 related relief packages.
As COVID outbreaks across the country keep businesses closed and millions of Australians in lockdown, the relief packages allow for temporary and limited coordination between the ABA and participating banks to defer loan repayments and waive certain banking fees for small businesses impacted by the pandemic.
The coordination also allows banks to facilitate second phase financial recovery and maintain access to banking services for small businesses.
ACCC chair Rod Sims said the ACCC's authorisation allows the banks to take a consistent approach to COVID-19 financial relief.
"In the context of COVID-19 related lockdowns and restrictions, the ACCC recognises that large numbers of businesses and individuals are continuing to experience significant financial hardship.
"We consider that the ABA’s coordinated packages are likely to assist banks with providing relief to businesses and other customers impacted by COVID-19 restrictions, maintain access to banking services and support financial recovery.
"Importantly, as well as offering customers the packages covered by the interim authorisation, banks can also individually offer more favourable and tailored solutions to their customers experiencing financial hardship during these times.
"Without this authorisation, banks would be forced to offer separate financial relief packages without standardisation or consistency," he said.
The ABA’s authorisation is subject to select conditions, including an obligation for the banks to notify the ACCC before any coordination on further specific financial packages.
The authorisation does not allow the banks to coordinate on any element of prices for any service or product.