KUALA LUMPUR: The Association of Islamic Banking and Financial Institutions Malaysia (Aibim) has ensured that its member banks will continue to provide access for Islamic finance banking products and services to eligible customers and businesses.
This is amid positive financial health of Malaysian households as recently mentioned by Finance Minister Lim Guan Eng.
Aibim’s president Datuk Adissadikin Ali in a statement today said, banks are in the business of providing financing or extending credit while adhering to their respective risk appetites within the prudential requirements.
“The Islamic banks assured that customers who are eligible will not be deprived from access to financing.
“However, customers should also recognise the need to make sound decisions based on their own affordability and in line with their financial conditions or circumstances, so that they will not be overly burdened by their financial obligations and not fall into financial hardship in the future,“ he said.
Last year, Islamic banks approved a total of RM37.7 billion, representing 36.7% from the total banking approved financing for the purchase of residential properties.
It also approved RM12.4 billion of personal financing which is 58% from the total personal financing amount approved by the banking industry.
As for the small and medium enterprises (SMEs), in addition to the various financing solutions offered, Islamic banks also supported the RM1 billion funding with a profit rate subsidy of 2% which was announced in the 2019 Budget, he said.
Adissadikin said Islamic banks have achieved a total of RM3 billion funding to SMEs under this scheme and benefitted 1,447 SMEs since 2012.