Interest waiver will have long-term consequences

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% of the total banking system’s loans.

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% of banks’ revenues, says Bank Negara.

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% of the total banking system’s loans.