KUALA LUMPUR: Bank Negara Malaysia’s (BNM) proposal to abolish the flat-rate method for calculating personal financing is seen as a significant step towards improving the financial health of households, said an economist.
In the Exposure Draft on Personal Financing released on Dec 13, 2024, BNM sought public input on new requirements to abolish the offering of personal financing where interest/profit charges are computed using a flat rate with the Rule of 78 method.
