The Overnight Policy Rate (OPR) will be maintained at 3.25%, Bank Negara Malaysia announced at its Monetary Policy Committee (MPC) meeting on Thursday.
KUALA LUMPUR: Investment banks demanding for the Broad Property Sector (BPS) guideline to be scrapped are taking a short-term view and should consider the long-term systemic implications of an over-exposure to the property sector and not just focus on their own commercial gains, said Bank Negara Malaysia (BNM).
“We should not be oblivious to the many lessons learnt from the Asian and global financial crises,” it said in response to an article entitled "IBs want property lending rule scrapped", published by a local daily recently.
In a statement issued on Wednesday, BNM said, the BPS guideline was introduced in 1997 to avoid over-concentration of credit exposures to the property sector.
“The guideline therefore is still relevant in curbing excessive systemic exposures to the sector, complementing other existing regulations,” it said.
Banking institutions should always be mindful of current property market conditions and not contribute to a situation where there was a mismatch between supply and demand, it said.
“There is currently an insufficient supply of affordable homes, and this situation could worsen if these supply-demand conditions persist.
“Banks and property developers should focus on supporting the affordable housing segment and development projects that generate multiplier effects to the economy,” it said. - Bernama
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