12 Jul 2013 11:19
KUALA LUMPUR, 5 July (Bernama) -- Bank Negara Malaysia (BNM) today announced measures to put into perspective certain limits on household credit. These include tenure limit of 10 years and 35 years respectively on personal financing and house financing. Pre-approved personal financing products are now prohibited. Dato’ Mohd Redza Shah, President of The Association of Islamic Banks in Malaysia (AIBIM) commented “These measures indicate concern by the Central Bank on household debt, in which household debt to GDP ratio has risen from 70% in 2009 to 83% currently. It will put in check certain financing and lending practices of non-bank financial institutions which have extended credit to very long tenures. Providing personal financing beyond 10 years is imprudent and going beyond 35 years for house financing is unrealistic" Mohd Redza further said "Affordability will be considerations that will be taken into account when an Islamic bank grants personal or house financing. AIBIM lauds BNM measures taken as it promotes responsible financing and sustainable consumer credit growth" About AIBIM The Association of Islamic Banking Institutions Malaysia (AIBIM) or Persatuan Institusi-Institusi Perbankan Islam Malaysia was established in 1996 as the Association of Interest Free Banking Institutions Malaysia, with objectives of promoting the establishment of a sound Islamic banking systems and practices and also aims at promoting and representing the interests of its 24 member banks and to render where possible such advice or assistance as may be deemed necessary and expedient to members. SOURCE: The Association of Islamic Banks in Malaysia (AIBIM) FOR MORE INFORMATION PLEASE CONTACT: NAME : Encik Adil Adra TEL : 03-2026 8002 / 8003 EMAIL : --BERNAMA