Those applying for loans with banks in the future will need to comply with a new credit assessment approach implemented by banks before any facilities are approved, said the chief business officer of Bank Simpanan Nasional (BSN), Mujibburrahman Abdul Rashid.
According to Mujibburrahman, the new approach will no longer depend solely on historical data for the approvals of loan applications. Instead, borrowers will need to provide future loan repayment or resilience strategies to convince the banks, particularly with regard to how they can mitigate future Covid-19-related setbacks.
“We will look at your action plans. Let’s say if there is a second wave of Covid-19, what is your business and marketing strategies that you can put in place to ensure this time around you are more resilient and are you ready for that?” said Mujibburrahman during a panel session in the Domestic Tourism In The New Normal webinar.
Aside from revealing the implementation of the updated credit assessment approach during the webinar, Mujibburrahman also encouraged local tourism players – whose businesses were majorly impacted by Covid-19 – to tap into financial aid such as loans or financing rescheduling and restructuring (R&R). He said that many industry players believed incorrectly that R&R implies defaulting on their loans.
“R&R is not an element of default but a relief to help business owners to ease their burdens,” said Mujibburrahman. He further added that it will not only ease their burden, but also help to reduce banks’ credit cost, ensuring that the banking industry can continue assisting the tourism industry.
(Source: The Edge Markets)