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Malaysian banks strike alliance to provide SME finance

Malaysian banks strike alliance to provide SME finance

(11 November 2005 – Malaysia) CIMB, BCB and SME Bank have entered into an alliance aimed at improving the banking sector’s ability to offer finance to Malaysia’s small businesses. "This will reduce many barriers to financing especially for newly established SME ventures that lack traditional collateral and a track record but which possess a good business plan, sound management expertise and viable market opportunities," the banks said.

The alliance will allow SME Bank, which is a subsidiary of the new Pembangunan Group, to access BCB’s delivery network and expertise, with BCB acting as collection agent in trade finance, deposits, payments, and other facilities not currently provided by SME Bank.

SME Bank said it had already recorded more than 3,500 loan applications since it was created in October in its 15 branches.

"We are in the midst of processing actual loan applications valued at more than RM100 million from businesses comprising start ups, micro, and SMEs across a large section of the industry," the bank said.

"The overwhelming response within such a short time demonstrates the strong spirit of entrepreneurship and enthusiasm among Malaysian SMEs."

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