GXBank secures IFC first-loss cover to boost RM470 million MSME loan programme
GXBank obtained up to US$4.95 million in first-loss protection from the International Finance Corp, enabling it to expand lending to underserved MSMEs in Malaysia.
GXBank announced that it has secured a first-loss guarantee worth up to US$4.95 million (RM21 million) from the International Finance Corp, marking the inaugural risk-sharing partnership for a Malaysian digital bank. The facility is intended to underpin a targeted loan book of up to US$110 million (RM470 million) aimed at micro, small and medium enterprises that lack conventional credit histories or collateral. Under the agreement, the IFC will absorb early losses on eligible loans, allowing GXBank to extend credit to “thin-file” businesses while reducing the risk-weighted capital required by Bank Negara Malaysia, thereby freeing balance-sheet capacity for automated lending.
To date, the bank says 15,000 MSMEs have opened digital accounts and more than 5,000 have taken loans. It has also approved RM27 million in Credit Guarantee Corporation Malaysia-backed facilities since March and raised maximum credit limits for expanding firms to RM350,000. Additionally, GXBank completed a proof-of-concept with fintech startup Finory to automate onboarding for micro-traders holding local-authority licences.
Why it matters
The deal gives a Malaysian digital bank new capacity to fund underserved small businesses, supporting economic inclusion and fintech growth.
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