Adopt Grameen Bank system
Can Malaysian banks know their customers without relying on the 'bad debtors' database system? The answer is 'yes'. One only has to study the efforts made by Nobel Laureate Professor Muhammad Yunus, the Bangladeshi economist and his Grameen Bank.The Grameen Bank has reversed conventional banking practices by removing the need for collateral and has created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral.On the other hand, Malaysian bankers are basically specialised in several different types of loans - credit cards, hire-purchase and housing loans, to name a few.
People have to apply for facilities from the existing banks because they have no choice. If we have a duplicate Grameen Bank in Malaysia, thousands will queue up outside its doors. Easy access for legal loans will reduce certain social diseases in Malaysia. These people need capital to start small businesses to create job opportunities for themselves as well as others. At the moment they are left idle which leads to time wasted on negative activities.
