News – Call to extend new lending rules to non-bank financial firms

So that all action is synchronize and coordinated by one central planners, which is Bank Negara, mostly for the benefit of the market player (i.e. bankers). A sync and well coordinated action is needed in the banking sector so that each participants (bankers) will support each other and become like the banking cartel in US and Europe.

 

Currently, consumer financing companies such as AEON Credit Service are not affected by Bank Negara’s responsible lending guidelines as these firms do not come under the country’s Banking and Financial Institutions Act.

Consumer financing companies receive money lending licences from the Housing and Local Government Ministry, under the Moneylenders Act 1951.

Lim, who described the guidelines as a temporary turbulence, said the introduction of such measures would ensure a more sustainable development of the financial sector and country’s economy.

“I really like Bank Negara, they are very proactive. When they see something, they will talk to us and then introduce the guidelines.

“It’s a good thing to do to protect banks and consumers. I look forward to more guidelines that are good for long-term growth of the country,” he said.

 

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