'BNM guidelines crucial for stable economy'

The Guidelines on Responsible Finance introduced by Bank Negara Malaysia is an important first stopgap measure to prevent any instability in the country's financial and economy system, the Dewan Rakyat sitting was informed today.

Deputy Finance Minister, Datuk Dr Awang Adek Hussin said the guidelines were introduced to ensure that the household sector and credit market remained sustainable and the level of cumulative household debts retained.

"The level of cumulative household debts in Malaysia has been rising at an annual average of 12.5 per cent the last 10 years.

"This accounted for 76.6 per cent of the gross domestic product (GDP) in 2011 and 55 per cent of total financing by the banking system," he said when replying to a question from Khairy Jamaluddin (BN-Rembau).

Khairy wanted to know if the government had plans to review the guidelines with the intent of loosening up the conditions for approving loans. -- Bernama