CBA boosts bushfire recovery support from $1m to $10m

Commonwealth Bank is extending its support to bushfire victims from $1m to $10m to assist rebuilding efforts.

CBA said on Thursday it would also accept individual grant applications of up to $50,000 – and increase from $20,000. Picture: Stuart McEvoy

Commonwealth Bank is extending its support to bushfire victims from $1m to $10m to assist rebuilding efforts and provide immediate relief.

The increase in support comes as Treasurer Josh Frydenberg has been actively courting corporate Australia to get behind the recovery effort.

All banks had initially pledged $1m in support. But Australia’s biggest farming lender, NAB, increased their support to $5m on Tuesday, as well as deferring repayments and interest for up to three years and committing to no foreclosures in affected communities.

CBA said on Thursday it would also accept individual grant applications of up to $50,000 – and increase from $20,000.

Commonwealth Bank CEO Matt Comyn. Picture: AAP

CBA chief executive Matt Comyn said they had increased the level of support in response to expected demand.

He said in the past week, the CBA has expedited processing of insurance claims worth almost $100m.

“While firefighters, volunteers and other emergency workers continue to battle the fires that have destroyed so many towns around the country, we have increased the value of the grants program to assist these communities with the rebuilding process,” Mr Comyn said.

Picture:Getty Images

The Treasurer has been getting in touch with the executive of the big four banks and other business leaders, encouraging them to support fire-affected communities.

Mr Frydenberg spoke to the Business Council of Australia over the weekend urging the private sector to assist in the disaster relief effort, prompting the peak business group to use its membership base to pull together a $25m trust to support the families of volunteer firefighters.

Mr Comyn said on Thursday CBA would also defer repayments on home loans, credit cards and personal loans in fire-affected areas, as well as provide emergency accommodation and credit limit increases.

The response comes as the behaviour of the big four banks was heavily criticised during the Hayne royal commission.

“CBA’s focus is on providing practical, on-the-ground support to provide immediate assistance to affected customers,” Mr Comyn said.

“Just as importantly, we want to support these communities to rebuild facilities and infrastructure, and that is what our grants program is designed to do.”