Aeon Credit, MBSB slip on tighter lending rules (Update)

KUALA LUMPUR: Shares of Aeon Credit and the securities of Malaysian Building Society Bhd (MBSB) fell in early Monday trade after Bank Negara Malaysia tightened rules on consumer loans.

At 9.43am, Aeon Credit was down 16 sen to RM16.84 with 5,000 shares done. MBSB shares and warrants fell 10 sen each to RM3.09 and RM2.19.

Aeon Credit Services was unchanged at RM17.

The FBM KLCI fell 3.51 points to 1,768.76. Turnover was 321.96 million shares valued from RM203.36mil. There were 214 gainers, 192 losers and 186 counters unchanged.

Last Friday, Bank Negara  announced property buyers will no longer have the option to take loans for longer than 35 years. Anyone taking a personal loan can now only do so for a period ofup to 10 years.

Before the new caps, property buyers could take loans for up to 45 years, while personal loans could be paid back over a period of up to 25 years.

Malaysia's household-debt-to-Gross Domestic Product (GDP) ratio is a high 83%. It is the highest in emerging Asia.

The stricter lending guidelines also saw the central bank prohibiting the offering of pre-approved personal financing products.

These new measures to tackle household debt were also be extended to all financial institutions and credit cooperatives regulated by Bank Negara, the Malaysia Co-operative Societies Commission, MBSB and Aeon Credit Service. 

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