The managing director of the Monetary Authority of Singapore says he expects banks to make more loans to small businesses at a lower cost now the MAS is introducing a new loan facility aimed at helping small and medium-sized enterprises (SMEs).

In a statement, Ravi Menon urged financial institutions to adjust their lending to SMEs. “With the government sharing 90% of the risk on such loans and MAS providing funding at almost zero cost under the facility, banks and finance companies will be able