Recently, SME complaint that they have difficulty to obtain bank facilities, these make them hard to survive due to short of cash flows. Malaysia government’s previously mentioned that bank have sufficient liquidity and have the ability to provide loan.
SME complaints that their existing loan been reduced, overdraft facilities reduced, loan been call-back, reduce their trade loan facilities and etc.
Bank are cautious and take longer processing time when provide any loan to SME. Moreover, banks are focusing on their loan recovery department to give more pressure to the borrowers who delay their repayment obligation, in anticipation “problem” loan percentage have the high possibility to go up.
For SME side, they comment that banks are over-reacting to the global recession. Banks are not following to what Malaysia central bank advice, that not over-cautious when lending is concerned.
In other ways, if you are the bank what will you react? They have to responsible to the stake holders, which include the depositors, shareholders, government, staffs and etc. If bank predict that future economy will worsen, they may have to squeeze their lending, in order to protect their own benefits.
If you are wise businessman or entrepreneur, we should not complaint the bank but we have to find our own way to survive in this market. Market is cruel; if you can not sustain in this market you will be kick-out.
When that is bad time, as a businessman we should bear along with our stakeholders, try to re-plan all our strategy and over come this global recession.
SME complaints that their existing loan been reduced, overdraft facilities reduced, loan been call-back, reduce their trade loan facilities and etc.
Bank are cautious and take longer processing time when provide any loan to SME. Moreover, banks are focusing on their loan recovery department to give more pressure to the borrowers who delay their repayment obligation, in anticipation “problem” loan percentage have the high possibility to go up.
For SME side, they comment that banks are over-reacting to the global recession. Banks are not following to what Malaysia central bank advice, that not over-cautious when lending is concerned.
In other ways, if you are the bank what will you react? They have to responsible to the stake holders, which include the depositors, shareholders, government, staffs and etc. If bank predict that future economy will worsen, they may have to squeeze their lending, in order to protect their own benefits.
If you are wise businessman or entrepreneur, we should not complaint the bank but we have to find our own way to survive in this market. Market is cruel; if you can not sustain in this market you will be kick-out.
When that is bad time, as a businessman we should bear along with our stakeholders, try to re-plan all our strategy and over come this global recession.
