MBSB Bank has RM5-6b affordable housing loans for approval in 2018

 By NG MIN SHEN/FILE PIX
 
MBSB Bank Bhd has RM5 billion to RM6 billion worth of affordable housing loans in the pipeline to process for approval this year. 
 
“This amount is mainly for our loan portfolio for government-backed affordable housing and can last us for about three years,” president and CEO Datuk Seri Ahmad Zaini Othman (pic) said.
 
He was speaking to reporters at the signing ceremony of MBSB Bank’s agreement with Cagamas SRP Bhd for Cagamas’ Mortgage Guarantee Programme, in Kuala Lumpur today. 
 
According to Ahmad Zaini, the bank has approved some RM1.6 billion in 1Malaysia People’s Housing Programme (PR1MA) loans, RM2 billion in loans for 1Malaysia Civil Servants’ Housing (PPA1M), and RM900 million for Federal Territories Affordable Housing (Rumawip) loans since it began providing affordable housing mortgages about two years ago. 
 
Meanwhile, the agreement inked is deemed beneficial to MBSB Bank as it is involved in nine projects under PR1MA with gross development value (GDV) worth RM1.61 billion, 15 projects under PPA1M worth RM7.5 billion, and six projects under Rumawip worth RM600 million. 
 
Through the agreement, the Islamic banking entity will now have access to the Mortgage Guarantee Programme offered by Cagamas SRP and will become a partner in the My First Home Scheme.
 
It can obtain guarantee coverage from Cagamas SRP for its home financing portfolio to facilitate the bank’s efficient capital management. 
 
“The guarantee by Cagamas SRP can help to improve the bank’s capital adequacy ratio, serves as an alternative venue to alleviate the impact of the Malaysian Financial Reporting Standard 9 (MFRS 9), and free up more capital for financing,” he added. 
 
Since the launch of the My First Home Scheme by the government in March 2011, 7,920 loans or financing amounting to RM1.6 billion have been approved by the participating banks and guaranteed by Cagamas SRP.
 

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