Despite interventions by the big four banks to mitigate customer losses, reimbursement rates for scam victims remain low, averaging around 4% of the stolen amount.

The heads of Australia's major banks, including National Australia Bank and ANZ, are set to face a parliamentary inquiry focused on the financial pressures affecting their customers.

This inquiry will examine the impact of persistently high interest rates on mortgage holders and the banks' rationale behind their predictions for an easing cycle.

The committee will also investigate how banks are managing the rise in scams, which resulted in significant financial losses for Australians last year.

Labor MP Daniel Mulino, who chairs the committee, has called for a clear scam reimbursement framework to set expectations for banks and consumers.

The hearings will continue with executives from NAB and ANZ scheduled to testify on Friday, following appearances by Commonwealth Bank and Westpac CEOs.

The official cash rate has remained steady at 4.35% since November, significantly affecting mortgage holders and contributing to financial strain.

Reserve Bank Governor Michele Bullock has indicated that no cuts to the cash rate are expected before the end of 2024.

Westpac CEO Peter King has suggested that interest rate cuts might occur in early 2025, though he cautioned that reaching that point will take time.

The big four banks dominate approximately 80% of the Australian banking sector and are facing criticism for exacerbating financial difficulties for their customers.

Commonwealth Bank CEO Matt Comyn highlighted that inflation and rising interest rates have disproportionately impacted young people and lower-income working families.

In 2023, Australians lost over $2.74 billion to scams, further complicating their financial challenges.