Basel III can affect SME loans, financing may become more expensive

PETALING JAYA: Small and medium enterprises (SMEs), which make up about 98% of business establishments in Malaysia, could experience a slower growth as loans to this sector potentially becoming more expensive with the implementation of the Basel III ruling.

Financing to SMEs could come under pressure, according to some industry observers and analysts who feel the global banking regulatory standard will pose a challenge to banks as it could make SME financing to become more costly.