Banks will find it tough to extend loan moratorium till year-end

Sheridan Mahavera

Banks have to make a profit, too, and can’t afford to absorb a reduced flow of loan repayments. – The Malaysian Insight pic by Afif Abd Halim, May 23, 2020.

BANKS should consider extending their current six-month moratorium on loans as it would ease the pressure on Malaysian households trying to survive the impending recession, said economists.

Some experts, however, admitted this is a tough request as banks cannot afford to continue to absorb a reduced flow of loan repayments, which would inevitably impact their bottom line.  

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  • Banks have been making billions of RM worth of profits annually over the years and their officers have been paid so very well. It time they took a cut in pay too and of course the extension of the moratorium will affect their bottom line. Is it logical for banks to intend to maintain or increase their bottom line this year, when most other people and business are so adversely affected. If banks don't make a profit this year, it would be OK for shareholders too, having enjoyed the boom at the expense of bank customers who inevitably got bad services in return for helping banks make exorbitant profits.

    Posted 2 weeks ago by Mike Mok