Personal loan application from oil and gas employees will be rejected upfront by Bank Simpanan Nasional (BSN) based on the internal notice issued by the bank.
The said BSN notice was leaked and the screenshot of the notice was shared on on instant messaging platforms.
The email states that, “All personal loans, credit cards, HP (hire purchase) loans for applications from employees from the oil & gas sector to be rejected upfront.”
The email also instructed sales executives to stop marketing and accepting applications from oil and gas employees.
However, the notice does not apply to non-contract employees of Petronas, but their applications would be subject to approval from headquarters. All mortgage loan applications and applications which have already been processed, would also require approval from the headquarters.
When asked to verify the notice, BSN strategic communications head Puspa Marina Omar was quoted by The Star Online as saying, “Yes, it is actually an internal memo.”
“The decision we made internally in terms of our operation is in terms of the bank’s business, and is temporary,” she added.
As a precautionary measure, Puspa Marina said BSN has tighten the rules on approvals of new loans and credit products.
“It is part of our standard procedure to consistently review developments in the financial and economic sector that may have an impact on our business,” she said.
“This includes taking note of industries facing challenges, such as the situation experienced by the oil and gas industry currently.
“The proposed tightening of loan and credit approvals is a temporary measure in line with the general expectations for prudent risk management,” said Puspa Marina.
The memo was not intended for public release, and was supposed to be circulated internally, for business units and high-level executives only, Pupa Marina said.
BSN remained focused on preserving the well-being of their customers and stakeholders, said Puspa Marina.
“We will therefore, review all loan and credit issuance policy on a continuous basis for all sectors based on market development. This remains a standard practice for BSN.
“All loans will still be subjected to the required affordability assessment as part of our responsible lending policy as we continue to support retail financing to all other sectors,” she said.
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