New wave of Covid cases set to hit the banks

With the recent spike in Covid-19 cases stoking concerns of some form of lockdown, analysts foresee a rise in applications under the three-month targeted loan repayment assistance, which began on Oct 1.

PETALING JAYA: The rising number of new Covid-19 cases is likely to lead to more borrowers – hit by movement restrictions – seeking loan moratorium extensions, as businesses are disrupted with further job and pay cuts.

This will continue to cloud the outlook for the banking sector, which posted a negative return of 5.5% in the third quarter, lagging behind the FBM KLCI’s flat return for the same period.