Bank Negara Governor cautions on interest waiver for RM1.4 trillion loans

Governor Datuk Nor Shamsiah Mohd Yunus there are serious implications if the banks were to waive accrued interests, given their critical role in the economy.

KUALA LUMPUR: Waiving the accrued interest payment on all individual and business loans will have significant long-term consequences for banks, especially when the interest income accounts for 80 per cent of banks’ revenues, Bank Negara Malaysia said.

Governor Datuk Nor Shamsiah Mohd Yunus said the total individual and small and medium enterprises (SMEs) loans that are eligible for automatic opt-in moratorium amounts to about RM1.4 trillion - or 73 per cent of the total bank system's loans.