There has been calls by the public who have utillised the loan moratorium during the stimulus package announcement, for it to be extended further after it expires in September. The calls has been heard and the government has left it to the banks to assess themselves if they want to.

Ministry of Finance Minister Tengku Zafrul feels the banks should hears out the people and offer extension to those who really need them. Affin Hwang Capital Research analyst Loong Chee Wei believes  some quarters who are affected by the pandemic to the point of losing their job would be given the moratorium, but it would not be a blanket order.

“Some are still facing hardship through this time, hence the moratorium given should be targeted,” he said. That’s it right, you will have to proof you are in dire state before the banks feel pity and extend the moratorium. CIMB and Ambank have offered to provide the extension case by case basis, which is bewildering, would they give the loan extension if they know the customer has lost his job or his business has bankrupt? Banks work on credit assessment, the higher the risk the less likely you will be accepted, so for them to say they will consider completely goes against the banks operating policy.

People are curious to find out how the banks will be taking this on to themselves with many not confident of receiving the moratorium extension. The government should not leave it to the banks, its not in their DNA to hand out loans or allow customers to skip payments if they are at high risk. Unemployment rate is increasing monthly, its projected to reach 5.5% by year end, businesses are shutting down, just recently Media Prima laid of staffs with other media company planning to do the same. Would those retrenched by these company’s and who desperately need the moratorium extension be considered? Will the banks listen to their plea and soulfully hand them the extension we wonder?

Nevertheless the banks should be more forthcoming on their comments and be transparent on their criteria.