ABM: Businesses seeking loans should engage financiers

PETALING JAYA: The Association of Banks Malaysia (ABM) has advised businesses that face challenges in their loan applications to discuss the matter with their financiers when making the suitability and affordability assessments.
ABM said this in a statement yesterday, in response to recent news reports that claimed banks have limited capacity to lend more.
“Corporates and entrepreneurs are urged to shop around for a financing package, which best meets their needs.
“Banks on their part are committed to enhance their capability to support businesses and entrepreneurs, which include the offering of various loan packages to meet the needs of innovative enterprises,” it said.
ABM said it also provides avenues for businesses and entrepreneurs to highlight issues, which they may face with their banks in connection to their loans or loan applications.
Entrepreneurs may contact ABMConnect at 1-300-88-9980 or write in to eABMConnect via its website, www.abm.org.my with regard to general queries on financing or specific issues related to commercial banks. ABM maintained that the Malaysian banking system’s liquidity remains healthy and viable businesses will continue to be able to obtain financing.
The association noted that the sector’s Basel III liquidity coverage ratio stood at 125% as at end of December 2016 and loan-to-deposit ratio is also robust at 89.8% with the level of net impaired loans sustained at 1.2% of net loans, and loan loss coverage ratio at 90.2% as at December 2016.
In addition, ABM said the outstanding business loans growth expanded 5% year-on-year in December 2016, driven by the annual expansion of loans to most major sectors including wholesale and retail trade, restaurants and hotels, finance, insurance and business services, as well as transport.