MALAYSIA: COMMERCIAL BANKS ADHERE TO RESPONSIBLE FINANCING GUIDELINES FOR PRODUCTS, SERVICES
KUALA LUMPUR, Malaysia � The Association of Banks in Malaysia (ABM) today said loans approved by its member banks are assessed stringently and in accordance to their internal approving guidelines and procedures.
In response to a recent article published by an online portal titled, Easy access to loans contributes to bankruptcy, says consumers group, the association said its member banks assessed loan applications based on the eligibility of the applicants and repayment capability, among other factors.
ABM has 27 members comprising commercial banks that currently operate in Malaysia.
“Our member banks remain committed to adhering to the guidelines of responsible financing and are continuously supportive in providing access to financing to eligible applicants,” it said in a statement today.
Rigorous verifications including checks with the Central Credit Reference Information System and various credit report agencies were performed before approval for loan applications were granted, said ABM.
“Banks adhere to responsible financing practices in providing loans. This is to avoid exposing both the bank and the borrower to increased credit risks.
“Our member banks also view fraud very seriously and if falsifications are detected, the banks will take immediate steps to address the issue and reject the application,” ABM said.
The association also reminded the public to practise prudent spending within their means to avoid being caught in a financial quandary.
“This also applies to having careful planning with regards to using facilities such as debit cards and other payment cards,” it added.
Source: NAM NEWS NETWORK