fbpx

Bank Negara: Guidelines won’t hamper access to financing

February 25th, 2012 Leave a comment

PETALING JAYA: Bank Negara has assured that issues arising from the implementation of the Guidelines on Responsible Financing, which came into effect on Jan 1, would be smoothened out.

However, the spirit of the guidelines, which promotes prudent, responsible and transparent retail financing practices as well as to ensure that the household sector and credit market stayed resilient, would remain.

Bank Negara said in a statement after a meeting with members of the automotive industry that access to financing would not be hampered as it would still be available to borrowers who could afford to repay their loans.

“Bank Negara has written to financial institutions to ensure that consumers who have the ability and capacity to repay should continue to have access to such financing,” it said.

The central bank said the meeting was held with representatives from Proton Holdings Bhd, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), DRB-Hicom Bhd, the Malaysian Automotive Association, Proton Edar Dealers Association and Perodua Dealers Association.

“The meeting discussed various implementation issues which will be resolved with financial institutions, including documentation requirements for purposes of income verification. This will contribute towards more efficient procedures and processes for vehicle financing,” it said.

Bank Negara said in the past five years, the proportion of vehicle financing over total loans to household sector had averaged about 20%, the second highest after financing for residential properties.

“While there have been some reduction in the total number of vehicle financing applications received between December 2011 and January 2012, due in part to the shorter working month, the approval rate for vehicle financing has remained stable at about 54% for the month of January 2012,” it noted.

The guidelines cover all new and additional financing including home and vehicle financing, credit and charge cards, personal financing as well as overdraft facility for the purchase of securities, except for share margin financing governed by stock exchange rules.

Among the guidelines’ measures, financial institutions must ensure that customers who were offered financing products could afford to repay in full throughout the financing tenure, without recourse to debt relief or substantial hardship.



SOURCE: The Star

Categories: Property News Tags:
RELATED PROPERTIES FOR SALE/RENT AT
  1. No comments yet.
  1. No trackbacks yet.
(You can also Login/Register to submit your comment using unique ID)


Comment Guidelines
  • Avoid political discussion.
  • Comments with inappropriate wordings or personal attack may be moderated or deleted.
  • Developer must register before comment. All anonymous comments claimed to be from developer without registration will be deleted.
  • All advertisement in the comment will be deleted. Please contact us for advertising details.



To advertise your property in this page under "Related Properties for Sale/Rent":
 1. Submit your property at PenangPropertySale.com, it's FREE!
 (Please do not advertise your property in the comment)