Banks to focus on targeted assistance post-moratorium

This would help to limit the increase in banks’ gross impaired loans, while enabling banks to restore cashflow generation from the majority of the SME and consumer loans. This was the feedback following Bank Negara’s session with banking analysts on Thursday, the research house said.

PETALING JAYA: Banks will focus on targeted assistance upon the expiry of the loan moratorium in September, whereby the moratorium will only be offered to borrowers needing financial assistance, according to CGS-CIMB Equities Research.

It said in a note yesterday that this would help to limit the increase in banks’ gross impaired loans, while enabling banks to restore cashflow generation from the majority of the SME and consumer loans.