THE government has no plans to let commercial banks enter the lucrative civil servant loans market, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said.

"No, we have not discussed that at all. It's not on our agenda at all," Husni said in Kelana Jaya yesterday, when asked if the government would consider such plan.

A news report last year said a number of commercial banks are planning to break into the market of lending to government employees after being allowed to make automatic salary deductions. The report did not name the banks or where it got the information from.

At present, only credit cooperatives and a number of government-owned financial institutions are provided with the special codes that allow these salary deductions. The ability to deduct loans repayment from the salary makes this business profitable for banks because the risk of bad debts are much lower.

http://properties.btimes.com.my/Current_Ne...s/hni2/Article/