Tighter lending policies mitigating risks to household debts

After the doldrums, the sector is expected to pick up momentum in the second half of next year with a recovery in, among others, oil prices as well as a clear direction on US policies especially on its interest rates

PETALING JAYA: Tighter lending policies have played a key role in mitigating risks to household debts, according to Bank Negara’s Financial Stability and Payment Systems Report 2016.

To continue reducing risks, the central bank said continued vigilance in lending practices must be maintained as well as support for households to effectively manage debt through sustained education and debt assistance programmes.