Thursday 24 March 2011

Stress Test for LOAN

In Bank Negara (BNM) Report 2010, it was announced that starting from the 3rd quarter of 2011, "new guidelines" will be implemented by all financial institutions to "stress test" loan applicants.  According to BNM's governor Tan Sri Dr. Zeti Akhtar Aziz, these guidelines are meant to ensure that those, who "cannot afford" to take loan, to "enter into debt".

From the newspaper, it seems that the measure is well-intentioned.  But its implementation will definitely affect the number of loans approved after its implementation.  Readers may read from the following link the news regarding this guideline.

http://biz.thestar.com.my/news/story.asp?file=/2011/3/24/business/8337522&sec=business

1 comment:

  1. It is very likely that before the implementation of new guidelines by Bank Negara scheduled at the 3rd Quarter of the year, we will see a surge of transactions of real estate purchases , especially those priced in the region of RM400,000 with individual purchasers. That's because the new guidelines are meant, in the words of the Governor, to stress-test the loan-applicants. That may make "borrowing" a little tougher.

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