CREDIT Guarantee Corp Malaysia Bhd (CGC) expects its syariah-compliant Direct Access Guarantee Scheme-Islamic (DAGS-i) to guarantee RM500mil worth of loans next year, said managing director Datuk Wan Azhar Wan Ahmad.
“We are looking at about RM500mil in terms of approval next year,” he told reporters after the launching ceremony of CGC's guarantee scheme in Islamic finance and DAGS-i in Kuala Lumpur yesterday.
DAGS-i will be available through CGC's network of 16 branches and four financial institutions: AmBank (M) Bhd, EON Bank Bhd, Malayan Banking Bhd and Bank Perusahaan Kecil dan Sederhana Malaysia Bhd (SME Bank).
“We are initially starting with these four financial institutions but it will ultimately include other institutions,” Azhar said, adding that the company was in talks with a number of financial institutions that were keen to offer this scheme.
DAGS-i is CGC's second Islamic guarantee scheme after Islamic Banking Guarantee Scheme (IBGS), which was introduced in 1997.
Up to Nov 30, guarantees covered under DAGS since its launch in 2001 amount to RM3.75bil from a total of 7,478 applications approved.
The company aims to guarantee about RM1bil under DAGS this year.
For 2005, CGC expects to guarantee about RM3.5bil worth of loans, up from RM3.01bil guaranteed last year.
Meanwhile, Bank Negara deputy governor Datuk Zamani Abdul Ghani said the total assets of the Islamic banking system had now surpassed the RM100bil mark to reach RM107.4bil or 11% of the total assets of the banking system.
He said from 2000 to 2004, Islamic financing for small- and medium-sized enterprises (SMEs) grew at an average annual rate of 47%.
He added that as of October 2005, Islamic financing to SMEs reached RM9.4bil, constituting 9.8% of the total financing of the banking system. He said this was a significant increase from RM1.7bil or 2.4% recorded in 2000.
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