ABM: Banks to continue playing essential role

PETALING JAYA: Commercial banks in Malaysia have played an essential role in the country’s economic growth by providing credit facilities to businesses and households, and they will continue to do so, says the Association of Banks in Malaysia (ABM).

The association clarified and was responding to a recent news report that Malaysian banks were turning cautious on lending.

According to the news wire report dated yesterday, Malaysian banks turning cautious on lending were adding to the country’s woes as economic growth falters.

A sell-off in the ringgit and added volatility in global stocks after Donald Trump’s victory in the United States presidential election give Malaysian banks no incentive to step up appetite for risk, it said.

The report said loan growth would likely weaken to at least a 12-year low in 2016, according to projections by AmInvestment Bank Bhd, RHB Research Institute Sdn Bhd and data compiled by Bloomberg.

“Commercial banks are in the business of lending and viable businesses will continue to be able to obtain financing. Recent data has shown that commercial banks remain supportive of businesses and households by extending loans to eligible applicants,” the association said in a statement yesterday.

“As at end-September, the outstanding business loans of the banking system recorded an annual growth of 2%, with loans being granted to the real estate, agriculture, manufacturing and finance, insurance and business services sectors.

“In particular, both the annual growth in outstanding small and medium-sized enterprises (SME) loans and the level of loans disbursed to SME continue to improve.

“Meanwhile, lending to households continues to grow, albeit at a slower pace with outstanding loans to this segment expanding by 5.6% in September,” ABM said.

It said businesses which face challenges in their loan applications should work with their financiers when making the suitability and affordability assessments for any facility they apply for.

“Banks on their part are committed to enhancing their capability to support businesses and entrepreneurs, which include the offering of various loan packages to meet the needs of innovative enterprises,” it said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , Association of Banks


Next In Business News

Bank Islam continues enhanced targeted repayment aid
UK probe of Gupta’s GFG a big test for beleaguered SFO
ESG provokes laughter and nightmares
Soros bought up stocks linked to Bill Hwang’s Archegos implosion
KLCI futures to trade higher next week
CPO futures to move higher next week
Biden rescinds Trump-era health insurance requirement for new immigrants
Venezuelan court seizes newspaper office in defamation case
FTC officials say 7-Eleven purchase of Speedway chain likely illegal despite closing
GLOBAL-LNG-Asian spot prices hit $10 on global supply disruptions

Stories You'll Enjoy