Monday May 13, 2013
CGC honours three leading banks for SME financing
Abdul Hamidy (centre) and Wan Azhar (second from left) with the Top SME Supporter Award recipients (from left) Malayan Banking Berhad deputy president and head of community financial services Datuk Lim Hong Tat, Public Bank Berhad chief operating officer Sulaiman Abd Manap and Standard Chartered Bank Malaysia Berhad head of SME Banking Vishal Shah. CREDIT Guarantee Corporation Malaysia Bhd (CGC) recently honoured three financial institutions for their significant contribution towards SME financing in 2012.
The awards were presented by CGC chairman Datuk Seri Abdul Hamidy Abdul Hafiz at its 18th Top SME Supporter Awards ceremony held at CGC’s headquarters in Petaling Jaya recently.
The winners of the awards ceremony under the commercial banks category were Maybank, Public Bank and Standard Chartered Bank.
The Top Bumiputera SME Supporter Award, which recognises financial institutions that had contributed the most financing to Bumiputera entrepreneurs was won by Maybank.
CGC had also bestowed the coveted Best Financial Partner Award to Maybank in recognition of its commendable efforts and contribution towards its asset quality.
Overall, Maybank has won three awards, namely the Top SME Supporter, Top Bumiputera SME Supporter and the Best Financial Partner.
In terms of contribution to loans growth, Maybank contributed 11.3% of the RM1.1bil loans guaranteed by CGC in 2012 with all award recipients accounting for 25%.
The award recipients were selected based on a set of criteria determined by CGC which include among others, the number and value of loans guaranteed, loans growth as well as net income growth and rate of default.
To-date, 23 commercial and Islamic banks as well as development financial institutions have received CGC’s Top SME Supporter awards since it was first introduced in 1996.
“The contribution of our banking partners has had a great impact on our SME outreach as we were able to leverage on their extensive branch network to serve many of the marginal but potentially bankable SMEs with viable business across all sectors,” said CGC managing director Datuk Wan Azhar Wan Ahmad.
Wan Azhar added that CGC had forged new alliances with banking partners to offer innovative financing options and delivery channels to enhance SMEs’ access to financing.
“We have forged strategic alliances with five banks to offer our innovative portfolio guarantee scheme that has proven to be a cost-effective and efficient delivery system as the turnaround time is faster with an approval rate of nearly 90%.”
Currently, five banks, namely Standard Chartered, Public Bank, OCBC Bank, RHB Bank and Alliance Bank are active participants in CGC’s portfolio guarantee scheme.
To-date, CGC has offered about RM700mil of financing to more than 2,700 SMEs since the inception of this scheme in 2009.
“Besides improving our products and delivery system, we are also assisting the SMEs to establish a credit history and track record to improve on their bankability for greater financial access,” added Wan Azhar.
“With credit ratings, SMEs are able to obtain funds based on their own merit, an ultimate strategic outcome for CGC as it could focus more on marginal and potentially viable SMEs.
“As at 2012, about 36% (110,000) of our borrowers have ‘graduated’ successfully from the guarantee schemes.”
In 2012, about 63% of the loans guaranteed by CGC were availed through two of its main schemes, namely the Credit Enhancer Scheme (Enhancer) and Direct Access Guarantee Scheme (DAGS), and through the Green Technology Financing Scheme (GTFS), a Government funded scheme which has a fund allocation of RM3.5bil.
As at April this year, CGC had approved a total of 71 applications under GTFS valued close to RM900mil.
Datuk Wan Azhar also stressed that there has been a significant increase in the quality of loans based on its provision for claims on loans guaranteed in 2012. “This is primarily due to improved management of our loan quality which included several proactive and preemptive measures we have undertaken to address potentially delinquent loans, as well as the assistance on loan restructuring and rescheduling of repayments extended to distressed borrowers.”
Source:
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