KUALA LUMPUR, MALAYSIA - The Government hopes that banks do not overreact and withdraw loan and overdraft facilities from businesses during these hard times.

Deputy Prime Minister Datuk Seri Najib Tun Razak said that in view of the volatile global economic situation, he hoped banks would not overreact by withdrawing overdraft facilities or recalling loans given to businesses which also had to face an uncertain economic environment.

"The global economy is volatile at the moment and people are concerned of an impending recession and inflation.

"In such a scenario, we hope banks do not overreact. Of course banks might need to adopt prudent measures in these times but I hope they are not too drastic resulting in the bumiputra, as well as the non-bumiputra, businessmen facing more pressure and difficulties," he said.

Najib was speaking to reporters Saturday after closing the two-day Bumiputra Economic Convention 2008 themed 'Leapfrogging the Bumiputra Economy', organised by Gabem and Umno Youth.

On whether banks were taking such action against businesses, he said he had not been told that banks were withdrawing the facilities but the business community had expressed its concern on the matter.

"But normally when the economy slows down banks will withdraw the facilities. If they overreact this way, businesses will be affected and some may be forced to close shop," he added.

He also said banks had a role to play for businesses to grow.