1 Jul - 2 min read
CIMB will be taking a “targeted approach” to assist borrowers who are affected by the Covid-19 pandemic once the Bank Negara-mandated six-month moratorium ends at the end of September.
“As we come to the end of the moratorium period, the focus for CIMB, as with other financial institutions, will be a more targeted assistance approach where we will engage borrowers from the hardest hit sectors to extend support and restructure terms where necessary,” said CIMB Group CEO Datuk Abdul Rahman Ahmad.
According to CIMB, the automatic loan moratorium had provided significant relief to its customers, especially those within the B40 segment and small and medium enterprise (SME) clients. As at end-May, the moratorium had benefited over 1.3 million CIMB retail customers and over 16,000 SMEs and corporate clients by way of cash flow alleviation.
CIMB Group chairman Datuk Mohd Nasir Ahmad said that despite the pandemic and resulting market volatility, the bank remains resilient and well-capitalised to withstand shocks. “The Malaysian economy is expected to recover due to stimulus measures, and the recent easing of the lockdown should bring about a faster rebound. Our banking system is also far more resilient today compared with previous crises,” said Datuk Nasir. “However, we remain vigilant for the rest of 2020, focusing on enhancing our risk management and ensuring that our liquidity ratios remain at a comfortable level.”
On the question of whether the current blanket moratorium should be extended once September ends, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said that banks will have the final say in the matter – including whether any future moratoriums would be done in a targeted manner. Maybank was the first bank to state that it will not be extending its current automatic deferment period, whereas AmBank has said that it is open to the possibility of a targeted moratorium instead of a second blanket one.
(Source: The Star)