Not all will survive when loan repayment pause ends as banks prepare for "hard decisions" - Banking Association boss Anna Bligh warns

Deferrals or pauses on bank loan repayments have been a critical lifeline during the COVID crisis, preventing many home owners and businesses from going to the wall.

But the Australian Banking Association chief executive Anna Bligh says although 91 percent of borrowers have now resumed repayments, it's clear that some won't survive as banks start calling loans in. 

The end of the loan deferral scheme coincides with the withdrawal of JobKeeper late next month.

But Ms Bligh tells ABC's Peter Ryan there won't be an economic shock when the emergency support pulls back.