GXBank gets IFC first-loss guarantee for US$110mil MSME loan book

GXBank has secured an IFC first-loss guarantee covering up to US$4.95 million against an MSME loan portfolio of up to US$110 million, said to be a regional first for a digital bank. The cover is meant to cut the risk-weighted capital GXBank must hold under Bank Negara Malaysia's framework, freeing it to lend more to businesses without collateral or credit history. The bank says 15,000 MSMEs have opened accounts and more than 5,000 loans have been drawn down.