KUALA LUMPUR: RHB Islamic Bank Bhd has teamed up with Credit Guarantee Corporation (CGC) to become the country's first bank to provide Wholesale Guarantee Islamic (WG-i) Bumi.
The agreement provides additional avenue for the Bank to extend its financing packages to deserving Bumiputera SMEs, according a press release issued on Friday.
“We understand the challenges faced by SMEs in expanding and growing their businesses, as such today’s partnership with CGC is testament to RHB’s commitment in creating synergy in the financial services sector to provide our customers with better options and facilities that are sustainable,” said Datuk Adissadikin Ali, managing director of RHB Islamic Bank.
“We are confident that more banks will collaborate with CGC for guarantee services to reduce risk on the books of financial institutions and freeing up capital to allow increased capacity for more SME financing,” said Datuk Mohd Zamree Mohd Ishak, CGC president and CEO.
The collaboration for the WG-i scheme is set to enhance the position of the existing selected portfolio in terms of its asset quality. The WG-i is an avenue for better management of capital charge for the SME portfolio in order to provide competitive financing packages in terms of pricing among others.
With WG-i, SMEs can leverage on the guarantee provided by CGC on portfolio basis which in turn will create opportunities for better cash flow management for SMEs as compared to the traditional product offerings available on the market.
Seventy-two existing Islamic Bumiputera SME customers under the SME portfolio will benefit from this scheme, in conformance to the predetermined eligibility criteria set by CGC and RHB Islamic.
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