MBSB under spotlight

THIS is turning out to be generally an interesting time for Malaysia Building Society Bhd (MBSB) following the enforcement of Financial Services Act 2013 (FSA). The non-bank financial provider next course of action will be closely-watched by investors and the industry.

Under the previous Banking and Financial Institution Act 1989 (Bafia), MBSB is defined as a scheduled institution. The status of an exempt finance company was granted to MBSB on March 1, 1972 by the Finance Ministry and the status has remained since and is thus not bounded by any financial regulators in Malaysia. The status allows MBSB to undertake a financing business in the absence of a banking license.