Farm­ers the first to ben­e­fit from big bank smack­down

The Daily Telegraph (Sydney) - - News -

THE Com­mon­wealth Bank has moved to in­tro­duce a key rec­om­men­da­tion from the Hayne royal com­mis­sion and will no longer charge drought-stricken farm­ers “de­fault in­ter­est”.

The Fi­nan­cial Ser­vices Royal Com­mis­sioner Jus­tice Ken­neth Hayne (pic­tured) slammed the banks for charg­ing farm­ers high de­fault in­ter­est for loans in times of drought or other nat­u­ral dis­as­ters — when there was lit­tle prospect the money would be re­couped.

To­day, the Com­mon­wealth Bank will an­nounce it will re­move de­fault in­ter­est charges from agri­cul­tural loans when the busi­ness is af­fected by drought or other nat­u­ral dis­as­ters. The changes were among a raft of lend­ing mea­sure Com­mon­wealth Bank says will help small busi­ness — in­clud­ing same-day ap­provals for loans of up to $250,000 for ex­ist­ing cus­tomers and beef­ing up its teams that sup­port small busi­nesses un­der fi­nan­cial strain.

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