BANKS TOLD TO RELAX LENDING PROCESS
Economy can improve with lenders’ help, says minister
THE government will not be pleased if banks continue to be strict with their lending process, said Finance Minister Lim Guan Eng.
“As an open economy, we are influenced by the (trade) friction between the United States and China. In this context, banks can play their bit by allowing more lending,” he said after launching the Securities Commission (SC) Fintech Roundtable, here, yesterday.
Lim said the first-quarter gross domestic product growth of 4.5 per cent, announced by Bank Negara Malaysia on Thursday, had exceeded expectations.
“We believe we will be able to see better numbers in the quarters ahead. Banks, therefore, need to lend more.
“They should relax their lending guidelines — not just to firsttime house buyers, but returning buyers and all types of businesses,” he said.
At the launch of the Fintech Roundtable yesterday, the SC released a new property crowdfunding framework.
Lim is hopeful the new framework would address the property oversupply issue in the Klang Valley and across Malaysia.
Earlier in his speech, Lim said the low financial literacy among young Malaysians and retirees
was of significant concern.
“A study by S&P Global Literacy Financial in 2014 showed that the financial literacy rate in Malaysia is only at 36 per cent, compared with 59 per cent in developed countries.
“Given that fintech players are now an integral part of our broader ecosystem with their power to bring in innovation, agility and new sources of financing, the onus is on the stakeholders from the financial services ecosystem to take steps to drive financial awareness and literacy among consumers, investors, lenders and businesses,” he added.