Court backs banks' use of computer-generated statements in loan recovery

The Court of Appeal has ruled that financial institutions may rely on computer-generated statements to support loan recovery proceedings, settling a significant question about the evidentiary standards applicable in banking disputes. The decision overturned a High Court judgment that had dismissed SME Bank's claim to recover RM689,207 from a borrower and two personal guarantors. The appellate court's determination establishes that computerised records, when properly authenticated, constitute admissible evidence in civil proceedings involving financial claims. This ruling clarifies the legal framework governing documentary evidence in the digital age and removes uncertainty that had previously hampered banks' ability to utilise their standard record-keeping systems in court. The judgment is expected to streamline loan recovery processes across Malaysia's banking sector by confirming that lenders need not maintain parallel manual documentation systems to substantiate claims. The decision underscores the judiciary's recognition of modern banking practices and electronic record management as legally sufficient for establishing contractual obligations and debt enforcement in commercial litigation.