The response follows a one-week consultation launched on 30 July.
APRA’s proposition would allow ADIs to provide eligible borrowers with an option to defer loan repayments.
APRA said this is intended to assist ADIs in supporting their customers across small business, home loans and other retail through this period.
The support would permit ADIs to not treat any repayment deferral as a loan restructuring.
Effectively, this would mean any period of deferral would not be counted as a period of arrears against the borrower, regardless of whether the borrower has previously been granted a repayment deferral.
APRA’s final guidance on the treatment of loans also requires that ADIs publicly disclose the nature of repayment deferrals and the volume of loans to which they are applied.
APRA will extend the time period for these adjustments to apply to loans granted repayment deferrals from 8 July until 30 September.
