Following the implementation of US President Donald Trump’s tariffs, CIMB Securities believes that banks will consider easing loans to exporters and suppliers as they did during the pandemic.
The loan rates provided will benefit those affected by Trump’s trade tariffs.
As the country grapples with the Covid-19 pandemic, which has affected almost all employment sectors, loans have been distributed to ease the burden on the people.
Among the benefits of bank loans to consumers during the pandemic is that they help affected businesses, help borrowers obtain financial funds and reduce the impact on the economy.
If banks repeat this action, the loans offered will also help provide extra time for many parties when facing the tariff situation.
CIMB Securities believes that this relief program plays an important role in preventing a further increase in affected loans.
A CIMB Securities report estimates that export-related loans have contributed 2.8% of the total loans in Malaysia.
Overall, bank share prices are expected to remain range-bound for the next few months pending clarity on the tariff issue. The sector is still considered to be at a moderate level.
