Affin Hwang Capital Research said an improving global economic outlook and relatively stronger commodity prices could set the stage for a further rebound in banking sector earnings this year.
KUALA LUMPUR: Loans approved by banks are assessed stringently and in accordance to their internal approving guidelines and procedures, according to the Association of Banks Malaysia (ABM).
“Our member banks assess loan applications based on the eligibility of the applicant and repayment capability among other factors. Rigorous verifications including checks with the Central Credit Reference Information System (CCRIS) and various credit report agencies are performed before approval for loans applications are granted.
“Banks adhere to responsible financing practices in providing loans. This is to avoid exposing both the bank and the borrower to increased credit risks,” ABM said in response to a recent article published in an online portal.
ABM added that its member banks also viewed fraud very seriously and if falsifications were detected, banks would take immediate steps to address the issue and reject the application.
The association has also reminded members of the public to practise prudent spending within their means to avoid being caught in a financial quandary. This also applies to having careful planning with regards to using facilities such as debit cards and other payment cards.
“Our member banks remain committed to adhering to the guidelines of responsible financing and are continuously supportive in providing access to financing to eligible applicants,” ABM said.
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