Analysts: MBSB cash call necessary, in line with Bank Negara ruling

PETALING JAYA: Most analysts feel that the imminent cash call by Malaysia Building Society Bhd (MBSB) is a necessity and in line with Bank Negara’s ruling, which may soon require non-bank financial institutions to have full-fledged bank requirements as well as comply with the responsible lending guidelines that all banks are subject to.

MBSB’s management has stated that it is going to embark on a new capital management plan to address its relatively low core capital ratio of 6.3% as at end-December 2012. For starters, it needs to shore this up to the 8% level.