Tell-tale signs from banks’ rising provisions

Banks are already being coerced by Bank Negara to be “extra accommodative”. Under Bank Negara’s watch, banks are already being cautious in collecting amounts due.

Elk-Desa Resources Bhd is one of the largest second-tier financing companies. It mainly offers loans to second-hand car dealers while a small portion of its assets is tied to people wanting to buy furniture on credit.

Its customers are mainly people from the bottom 40 category who do not qualify for loans from the tier-1 financial institutions which are commercial banks.