Bank Islam continues post-moratorium assistance

by LYDIA NATHAN / pic by MUHD AMIN NAHARUL

BANK Islam Malaysia Bhd has extended its post-moratorium assistance for its customers until June 30, 2021, with the aim to help navigate the current situation particularly with the recent spike of Covid-19 cases in the country and globally.

In a statement released yesterday, the bank said it will continue its targeted repayment assistance for customers who have lost their jobs or suffered a reduction in their monthly income.

Its CEO Mohd Muazzam Mohamed said as an alternative, Bank Islam will provide rescheduling and restructuring options for those who have not lost jobs or faced a reduction in monthly income, but would still like to re-strategise their finances.

“We have been consistently approaching our business banking customers who need a more customised plan in servicing their debts since the beginning of the automatic moratorium in April 2020, and our approval rate for business banking customers remains at almost 100%,” he said.

Mohd Muazzam said for its retail customers, the bank approved 100% of the total applications received, of which 43% was approved under a further three-month deferment plan. Meanwhile, the remaining 57% was approved under a six-month instalment reduction plan.

“Even though the six-month automatic moratorium period ended at the end of September 2020, Bank Islam continues to assess applications from affected customers who require repayment assistance.

“We are aware that there are customers who may continue to experience cashflow pressures amid the pandemic and need further support in managing their finances,” Mohd Muazzam said.

He added that the bank has been actively reaching out to potentially vulnerable customers, especially in sectors that are being heavily impacted by the pandemic, including the tourism, hospitality and airline sectors.

The bank also said as of yesterday, 98% of its customers resumed servicing financing commitments after September 2020.

“The repayments ensure that more liquidity and resources will be available for Bank Islam to continue providing aid to other individuals and businesses,” it said.

Meanwhile, Mohd Muazzam said banking services will remain virtually accessible throughout the Conditional Movement Control Order to meet the needs of its customers.

“On behalf of the bank, I thank everyone for all the support given during this trying time. Bank Islam is committed to safeguarding the wellbeing of our customers and business, at the same time playing our role in supporting the country’s economic recovery,” he noted.