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
BIS Paper Studies Impact of Fintech Lending on Small Businesses in US
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
EBA Launches EU-Wide Transparency Exercise in 2022
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
EC Rule Lists Advanced Economies for Market Risk Capital Calculations
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
