BNM Provides Additional Details on Relief Measures Amid Pandemic
BNM provided additional details on the announced measures to households and businesses affected by COVID-19 pandemic. BNM announced additional financing facilities, enhancements to the targeted repayment assistance, and several other initiatives. The announcement involves the financing facilities that provide relief and support recovery for small and medium sized enterprises (SMEs) and these facilities include the Targeted Relief and Recovery Facility (TRRF), the High Tech Facility (HTF), and the Micro Enterprises Facility (MEF). The new TRRF will be open for applications from December 01, 2020 while more details on the HTF will be announced on December 01, 2020. Borrowers can continue to approach banks for tailored repayment assistance based on their specific financial circumstances, as all banks continue to stand ready to provide support to borrowers that need assistance.
Additional repayment assistance will be rolled out to certain borrowers who can request to either defer monthly instalments for 3 months; or reduce monthly instalments by 50% for six months. The assistance will be extended for facilities approved before October 01, 2020, which are not in arrears for more than 90 days at the time a borrower requests for repayment assistance. These borrowers who had previously received other forms of targeted repayment assistance and who wish to request for further assistance under the additional measures can still do so by contacting their banks. The additional repayment assistance will be available to eligible borrowers between November 23, 2020 and June 30, 2021. The repayment enhancement will be available for installments due December 2020 onward.
BNM has been working with the banking industry to finetune the delivery of targeted repayment assistance for borrowers whose household incomes have been reduced due to the pandemic. In addition to contacting banks, an additional avenue will be made available for micro-enterprises; they can now request for repayment assistance through a dedicated micro-business helpdesk. The virtual helpdesk provides free financial advice and facilitates applications for repayment assistance. In addition, the government, BNM and the financial industry are collaborating on several initiatives to further assist individuals and SMEs, including expansion of iTEKAD program. The program, launched in May 2020, combines social finance instruments such as zakat, sadaqah, and waqf with the provision of microfinancing, structured training, and mentorship. These instruments will empower micro-entrepreneurs to generate sustainable income and achieve financial resilience. In tandem with the increase in allocation to MEF, the iTEKAD program will be expanded with the participation of more Islamic banks.
Related Links
Keywords: Asia Pacific, Malaysia, Banking, COVID-19, Credit Risk, SME, Loan Repayment, Targeted Repayment Assistance, Islamic Banks, BNM
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
APRA Announces Reduction in Committed Liquidity Facility for BanksNext Article
ECB Updates Documentation on SHS Reporting by BanksRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.
