However, he did not elaborate.

He said this when answering a related question by Salim Shariff (BN-Jempol) on the request by borrowers for banks to waive the accrued interests during the moratorium period.

The MP, who described the decision by banks to charge accrued interest during the moratorium as “rubbing salt on the wound,” asked the deputy minister what steps had been taken to help borrowers affected by the Covid-19 pandemic.

Yamani said accrued interest would remain as banks needed to be responsible to their depositors and to also continue to provide loans to sustain the economy.

“The banks have agreed not to charge compound interest or penalise borrowers in any form. Banks need the accrued interest on accumulated loan balances as they need to pay interest to their depositors, and bear financing costs,” said Yamani.

Yamani added that banks were discussing the request for a three-month interest moratorium extension for B40 borrowers, who were mentioned in the Memorandum of Understanding (MoU) on transformation and political stability signed by the prime minister and Pakatan Harapan leaders.

“This has to be studied as it will affect their financial status as well as their shareholders’ interests. A workable solution will be announced and implemented.”

To a question by Dzulkefly Ahmad (PH-Hulu Selangor) on whether banks were profiting from the pandemic, Yamani said banks were in good shape but their stability should not be taken for granted as they needed to invest in crucial sectors to revitalise the economy.