Share
KUALA LUMPUR: Malaysia's household debt, which stood at RM577 billion in November last year, is still on prudent level, says Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz.
She said household debts accounted for about 50% of total loans and 74% of gross domestic product (GDP).
"While it may seem high, one thing that Malaysia has, which is very important for banking institutions in particular, is the central credit reference information system.
"Even if you have RM1 credit card balance, your name will be on this system so while doing credit evaluation, banking institutions have access to what the financial obligations of the particular borrower," she told reporters after launching a money management programme Pengurusan Wang Ringgit Anda (Power!) here on Wednesday, Jan 19.
The programme is aimed at empowering young individuals and new borrowers to effectively manage their finances, which in turn would contribute towards promoting better protection for financial consumers and a more resilient household sector.
Zeti said the level of Non-Performing Loans (NPLs) were still low, adding that NPLs in the overall banking sector was at 2% while for the household sector it was at 2.3%.
"Currently, we believe that the borrowing within the household sector is at prudential levels, but we don't want to wait until we do have a problem and that is why we are introducing this programme," she added.
Zeti said BNM's priority was to ensure household indebtedness within the prudential level, while monitoring the banks and ensuring that there is no excessive and irresponsible lending behavior.
"As for the consumers, we will monitor closely," she said, adding that the information provided by the Credit Counseling and Management Agency (AKPK) showed that 60% of consumer cases was related to household debt problem.
Meanwhile, the Power! programme is expected to equip individuals with practical financial knowledge and skills as well as decision-making tools to make sound financial decisions.
It will include useful information and tips to encourage prudent money management and financial discipline. — Bernama
She said household debts accounted for about 50% of total loans and 74% of gross domestic product (GDP).
"While it may seem high, one thing that Malaysia has, which is very important for banking institutions in particular, is the central credit reference information system.
"Even if you have RM1 credit card balance, your name will be on this system so while doing credit evaluation, banking institutions have access to what the financial obligations of the particular borrower," she told reporters after launching a money management programme Pengurusan Wang Ringgit Anda (Power!) here on Wednesday, Jan 19.
The programme is aimed at empowering young individuals and new borrowers to effectively manage their finances, which in turn would contribute towards promoting better protection for financial consumers and a more resilient household sector.
Zeti said the level of Non-Performing Loans (NPLs) were still low, adding that NPLs in the overall banking sector was at 2% while for the household sector it was at 2.3%.
"Currently, we believe that the borrowing within the household sector is at prudential levels, but we don't want to wait until we do have a problem and that is why we are introducing this programme," she added.
Zeti said BNM's priority was to ensure household indebtedness within the prudential level, while monitoring the banks and ensuring that there is no excessive and irresponsible lending behavior.
"As for the consumers, we will monitor closely," she said, adding that the information provided by the Credit Counseling and Management Agency (AKPK) showed that 60% of consumer cases was related to household debt problem.
Meanwhile, the Power! programme is expected to equip individuals with practical financial knowledge and skills as well as decision-making tools to make sound financial decisions.
It will include useful information and tips to encourage prudent money management and financial discipline. — Bernama
SHARE
