Tackling responsible lending obligation in Malaysia: a diverse approach
This paper examines responsible lending obligation among various credit providers under the present legal and institutional framework in Malaysia. The scope of consumer credit industry includes banking, hire-purchase, moneylending and pawnbroking. The study finds an inconsistent approach in deali...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Science and Engineering Research Support Society (SERSC)
2019
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/75586/ http://irep.iium.edu.my/75586/ http://irep.iium.edu.my/75586/7/75586%20-%20tackling%20responsible%20lending%20obligation%20in%20Malaysia.pdf |
| Summary: | This paper examines responsible lending obligation among various credit providers
under the present legal and institutional framework in Malaysia. The scope of consumer
credit industry includes banking, hire-purchase, moneylending and pawnbroking. The
study finds an inconsistent approach in dealing with responsible lending whereby only
banking institutions regulated by the Central Bank of Malaysia are subject to this
obligation while non-bank institutions are not. Several recommendations for future
improvements are proposed by referring to the practice of several other jurisdictions. The
suggestions will help the policymakers to seriously consider imposing this obligation on
all credit providers. Eventually, the protection against the irresponsible lending practice
is accorded to a wide range of financial consumers in consumer credit industry in
Malaysia. |
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