Tycoon slams BNM governor’s indifference on loan moratoriums

 

Ameer Ali Mydin says Nor Shamsiah Mohd Yunus fails to understand that despite the pandemic banks still make sizeable profits while businesses and the people are suffering.

PETALING JAYA: Bank Negara Malaysia (BNM) governor Nor Shamsiah Mohd Yunus should “go down to the ground” and understand the dire situation faced by businesses when commenting on the loan moratorium issue, says a prominent tycoon.

“It is morally wrong that banks are profiteering from the difficulties of their borrowers to the tune of billions,” Business Survival Group adviser Ameer Ali Mydin told FMT.

“BNM should not just be looking after banks and making sure they are healthy. They should keep an eye out for the whole country as well.”

Ameer was commenting on Nor Shamsiah’s remarks yesterday that a full waiver on interest during the loan moratorium will result in “serious negative consequences” for banks and more difficulties for the people.

After the opt-in loan moratorium was announced by the finance ministry under the Pemulih aid packages, the assistance programme came under scrutiny for not waiving accrued interest during the period of the moratorium.

Many critics pointed out that without the interest waiver, the moratorium would just be adding to the borrowers’ burden in the future.

Nor Shamsiah said interest collected from loans represented around 80% of the banks’ total income, hence to remove it during a moratorium would harshly affect their liquidity.

However, Ameer said the reality was that despite the pandemic, banks still made sizeable profits. He cited reports that the country’s top banks recorded over RM30 billion in profit last year.

“What’s the use if banks’ balance sheets are good while the rest of the country suffers, with businesses and people continuing to struggle.

“When businesses struggle, so too do the people. In the retail sector alone, over 50,000 people have lost their jobs. Some 30% of shops in malls are closed for good.

“We’re not asking banks to forego the interest on all the money they’ve lent. We just want BNM to give a lifeline to industries which are dying through no fault of their own.”

These industries, he said, included the tourism, retail, and events sectors which have been crippled by restrictions aimed at curbing the spread of Covid-19.

“Why can’t banks take a cut in their profits? Is it too much to ask for?

“Bank Negara should not just look at the long-term impacts on banks where the moratorium is concerned but the immediate impact on businesses which are on the verge of closure, and the job loss that follows each time that happens.

“We hope Bank Negara can think outside the box and have a heart.” - FMT