Maybank does not restrict giving loans to applicants working in the oil and gas sector that is facing a rapid decline

Maybank does not restrict giving loans to applicants working in the oil and gas sector that is facing a rapid decline due to falling prices worldwide. — Picture by Choo Choy May

KUALA LUMPUR,  — For Malayan Banking Berhad (Maybank), it’s still “business as usual” for borrowings from the oil and gas sector that is facing a rapid decline due to falling prices worldwide.

Local lender Bank Simpanan Nasional (BSN) sent shockwaves earlier yesterday after admitting it is restricting loan approvals for those in once lucrative sector.

“It is business as usual and the bank continues to process loan applications as normal, in line with applicable credit underwriting standards,” the country’s largest bank based on asset size told Malay Mail Online in a brief statement yesterday.

A leaked internal memo from BSN Wednesday showed that the bank has asked its sales staff to outright reject loan applications by those who are working in that sector due to the sector being considered “high risk”.

The memo also said that only Petronas staff with a full time position would be considered for loans.

The price of a barrel of oil sank to a new low of US$25.99 yesterday, compared to a high of US$110 per barrel in 2014 before the oil price started plummeting. It has since risen 5 per cent to US$30 today.

The decreasing oil price has put a strain on the heavily oil-revenue reliant Malaysian economy, forcing Putrajaya to revise its federal budget for the second year in the row.

Malaymailonline