ABM supports Bank Negara’s proactive moves


ABM chairman and Maybank group president/CEO Datuk Abdul Farid Alias said: “The measures announced have been designed not only to support customers in this highly unusual global environment, but also to ensure that banks can continue to play their role in sustaining the country’s economy.

PETALING JAYA: The Association of Banks in Malaysia (ABM) is fully supportive of Bank Negara’s proactive measures to mitigate the economic impact caused by the Covid-19 outbreak.

ABM said in a statement yesterday that its member banks are in full agreement with the intent of the moratorium announced by Bank Negara which is believed to be a necessary solution.

“The moratorium is the best measure to provide the greatest assurance of job preservation in the midst of personal financial adjustment.

“Banks acknowledge the vast majority of customers act responsibly on repayments, and apart from adverse circumstances, such as illness, marital status change, or loss of jobs, we have no reason to believe there will be a change in this behaviour.

“We are currently working out the full details of the proposals to ensure they will be efficiently executed with minimum inconvenience to customers, ” said ABM.

It added that any adverse asset quality issues will be relatively short-lived and temporary in nature.

As a summary, ABM members will grant effective April 1 an automatic extension of credit facilities in existence for a period of six months to retail and small and medium enterprises (SME) customers, excluding credit cards.

While interest will accrue during this moratorium period, there will be no payment of interest and principal required for credit facilities for the six-month period.

As for other segments, the moratorium will apply on a case-to-case basis and customers should be in touch with their bankers to discuss the specific relief sought.

ABM applauds the various initiatives taken thus far by the government and Bank Negara in dealing swiftly with the crisis.

ABM chairman and Maybank group president/CEO Datuk Abdul Farid Alias said: “The measures announced have been designed not only to support customers in this highly unusual global environment, but also to ensure that banks can continue to play their role in sustaining the country’s economy.

“We hope it will provide customers some breathing space and allow them to focus on other critical aspects of their livelihoods at this time.”

Apart from that, ABM clarified that it has presented a number of requests to Bank Negara, specifically in respect of the recognition and classification of assets, policies regarding MFRS9, liquidity and capital, as well as market behaviour concerning deposit-taking activities.

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

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Oil analysts see battle for Asian market
EPF: No conditions for i-Sinar application
EPF assures investments resilient despite challenges
Sony to shut Penang factory, consolidate facilities
CPO futures likely to consolidate next week with bouts of profit taking
Buffetts' Brooks Running grows as pandemic sees more hit the road
Ant, Grab's venture and Sea to usher in Singapore digital banking
Fire at Petronas' S. African refinery put out, probe underway
Oil rises to just US$50/bbl on hopes for US stimulus
Wall Street's main indexes hit all time high

Stories You'll Enjoy