It was the bankers’ turn to front the Royal Commission on Monday.
This is the second last day of the Commission’s hearings into funding, financial and prudential regulation, and as always there were plenty of interesting talking points from the group that represented over $10 billion in outstanding loans to the sector.
Long-term structural shift will create pressure
Commonwealth Bank of Australia executive general manager Chris Williams said a shift from residential care will create “an awful lot of pressure”.
“There is probably no other industry that the Commonwealth Bank supports where I would be able to say that more than 50 per cent of the operators in the industry are either marginally profitable or loss making,” he added.
Occupancy impact already evident
ANZ head of health Sam Morris also appeared, saying COVID-19 was putting pressure on operators, particularly with metro Melbourne operators.
We're watching that really carefully, particularly seeing lower levels of occupancy in that area and, of course, with that comes liquidity risk."
