Question: What modalities are being set up to enable cash borrowing by the banks

Answer passage (source: Australia):
page_title: Supporting the Flow of Credit
section_headers: Australian Prudential Regulation Authority - Ensuring banks are well placed to lend
section_content: The Australian Prudential Regulation Authority (APRA) has announced temporary
changes to its expectations regarding bank capital ratios. The changes will
support banks’ lending to customers, particularly if they wish to take
advantage of the new facility being offered by the RBA.

Australian Prudential Regulation Authority (APRA)


Reviewer feedback on this answer:
Has a succinct answer about bank capital ratios supporting increased lending, with a link to more detailed information.
This addresses ways to encourage banks to keep lending, but does not give details about what they are doing or cash loans specifically.

Reviewer ratings:
Acceptable
Could be Improved

Answer passage (source: Australia):
page_title: Supporting the Flow of Credit
section_headers: Support for non-ADI and smaller ADI lenders in the securitisation market
section_content: The Government is providing the Australian Office of Financial Management
(AOFM) with $15 billion to invest in structured finance markets used by
smaller lenders, including non-Authorised Deposit-Taking Institutions (non-
ADIs) and smaller Authorised Deposit-Taking Institutions (ADIs). This support
will be provided by making direct investments in primary market
securitisations by these lenders and in warehouse facilities.

Australian Office of Financial Management


Reviewer feedback on this answer:
Talks about investment in small lenders. Connection to question could be a little more explicit.
This offers a solution that focuses on banks continuing to lend money, but doesn't specifically mention figures or cash.

Reviewer ratings:
Acceptable
Acceptable

Answer passage (source: Australia):
page_title: Supporting the Flow of Credit
section_headers: Reserve Bank of Australia – Supporting the flow and reducing the cost of credit
section_content: The Reserve Bank of Australia (RBA) announced a package on 19 March 2020 that
will put downward pressure on borrowing costs for households and businesses.
This will help mitigate the adverse consequences of the Coronavirus on
businesses and support their day-to-day trading operations. The RBA is
supporting small businesses as a particular priority.
The RBA announced a term funding facility for the banking system. Banks will
have access to at least $90 billion in funding at a fixed interest rate of
0.25 per cent. This will reinforce the benefits of a low cash rate by reducing
funding costs for banks, which in turn will help reduce interest rates for
borrowers. To encourage lending to businesses, the facility offers additional
low-cost funding to banks if they expand their business lending, with
particular incentives applying to new loans to SMEs.
In addition, the RBA announced a further easing in monetary policy by reducing
the cash rate to 0.25 per cent. It is also extending and complementing the
interest rate cut by taking active steps to target a 0.25 per cent yield on
3-year Australian Government Securities.

Reserve Bank of Australia


Reviewer feedback on this answer:
Has a detailed discussion of measures to facilitate cash borrowing at topics. Fully on topic.
This gives detailed information about the program and steps that will be implemented to promote banks to continue issuing cash loans.

Reviewer ratings:
Excellent
Excellent