The government-owned Bank Simpanan Nasional (BSN) says it is tightening lending rules for loans to employees in the oil and gas sector.
A statement from the bank said this move was being made as a precautionary measure amid risks for the oil and gas sector which was faced with falling oil prices.
“The proposed tightening of loan and credit approvals is a temporary measure in line with the general expectations for prudent risk management,” the bank said in a statement today.
BSN was responding to reports that it was freezing approvals for loan applications by employees in the petroleum sector based on a screenshot of an internal bank email that had been circulating on instant messaging applications.
The email said that new applications for personal loans, credit cards and hire purchase loans from employees in the oil and gas sector are to be rejected upfront.
An exemption would only be given to non-contract employees of Petronas but these applications had to get approval from the bank's headquarters first.
“BSN would like to confirm that it is part of an internal memo circulated by the management as a specific precautionary measure.
“It is part of our standard procedure to consistently review developments in the financial and economic sector that may have an impact on our business. This includes taking note of industries facing challenges, such as the situation experienced by the oil and gas industry currently.”
Earlier today, Star Online reported BSN customer representative denying such a notice, saying there had been no information issued by the bank.
BSN's statement today said the bank would continue to review its policies loan and credit issuance “on a continuous basis for all sectors based on market development”.
“This remains a standard practice for BSN. All loans will still be subjected to the required affordability assessment as part of our responsible lending policy as we continue to support retail financing to all other sectors.”
The oil and gas sector has been hit hard as oil prices plummet to below US$27 (RM118) per barrel.
Malaysia's national oil company, Petronas, is to slash as much as RM50 billion in capital and operating expenses over the next four years, Reuters reported earlier, and is now said to be considering retrenchment for some of its 51,000 staff.
Original article from http://www.themalaysianinsider.com/malaysia/article/bsn-says-studying-proposal-to-freeze-loans-applications-from-oil-and-gas-wo
