NewsBite

Opinion

Karen Maley

Why bankers hope they'll avoid a bad debt tsunami

Economic activity has fallen off a cliff and the jobless rate has spiked. So why are bankers quietly confident they'll avoid the bad debt blowout they suffered in the early 1990s recession?

Karen MaleyColumnist

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

On the face of it, the stats look abysmal.

There are 7.7 million Australian workers on some form of government welfare. Repayments have been frozen on 10 per cent of mortgages and 15 per cent of SME loans. Bankers have been left with about $220 billion in loans that aren't being serviced.

Loading...
Karen Maley writes on banking and finance, specialising in financial services, private equity and investment banking. Karen is based in Sydney. Connect with Karen on Twitter. Email Karen at karen.maley@afr.com

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Financial services

Fetching latest articles

Most Viewed In Companies

    Original URL: https://www.afr.com/companies/financial-services/why-bankers-hope-they-ll-avoid-a-bad-debt-tsunami-20200517-p54to5