KUALA LUMPUR: OCBC Bank (Malaysia) Bhd and its Islamic arm OCBC Al-Amin Bank Bhd will not compound interest and profit for its mortgages and SMEs loans/financing during the six-month moratorium announced by Bank Negara Malaysia recently.
OCBC said this means that these customers would not be charged any interest on the interest that arises from the moratorium period.
It is learnt that OCBC has become the first bank in Malaysia to waive this compounding interest or profit.
OCBC Bank chief executive officer Datuk Ong Eng Bin said this would apply to both mortgage and SME customers.
“These are both trying and uncertain times. So we are seeking to alleviate our customers’ burdens as much as we can.
“Although compounding might be allowed for, we have elected not to do so in light of the pressing circumstances.
“We hope our customers will continue to exercise prudence in their spending during these challenging times,” he said.