Advertisement Banner

Sufficient liquidity in the banking system. Monitoring also in place.

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

This has happened: BNM’s 6 months moratorium on loans for businesses and Malaysianns. So, yes, it is still a hot topic at the moment and many questions were also asked. This was asked to me too, “Could I get a 100% home loan” since Bank Negara Malaysia (BNM) has eased the financial approval requirements? The answer is nope. It’s not to help first time home buyers, not this moratorium anyway.

This moratorium is aimed at ensuring businesses could continue to operate and not closing down during this Movement Control Order (MCO) period. Not all will survive but at least more would. As for the question of whether the banks themselves have enough liquidity to carry out the moratorium, here is BNM’s answer.

Article in malaysiakini.com Bank Negara Malaysia (BNM) said its recent 100 basis-point reduction to its statutory reserve requirement had released some RM30 billion into the banking system, on top of RM160 billion in excess liquidity. “Of this, approximately RM100 billion placements with the bank under open market operations can also be used to meet the liquidity needs of the banking system,” BNM said in a statement.

BNM also said that it will continue to supply daily ringgit liquidity to banks via various tools under its open market operations, including the outright purchase of government securities, foreign exchange swaps, reverse repos and the standing facility. BNM said it will also allow banks to drawdown on the capital conservation buffer of 2.5 percent, operate below the minimum liquidity coverage ratio of 100 percent, and utilise the regulatory reserves that were set aside during periods of strong loan growth. Banks would be expected to restore the buffers “within a reasonable period” after the end of the year. Please do read the full article in Article in malaysiakini.com

Perhaps another question. Will a recession happen in Malaysia? I have tried to search for at least one article which says that it has predicted that Malaysian will fall into a recession. At the moment, it’s mostly a downgrade of the potential GDP number instead. Hopefully this stays for a while until we see some light at the end of the tunnel to this COVID-19 issue. Then, we should be fine by then. STAY at HOME and please take care. MCO is now until 14th April 2020.

Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.

Next suggested article: Buying a property: Stamp Duty and Legal Fee?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

We love to hear from you (Facebook Comment)

LIKE us for property news update, FREE.

Advertisement Banner



kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

Advertisement Banner

LIKE us for property news update, FREE.

Property investment news everyday? Subscribe for free!

An article a day, keeps updated all the way.

Join 1,288 other subscribers

Property investment news everyday?

An article a day, keeps updated all the way. Subscribe for free!

join the family

Like us for daily investment news and more

Hit the like

%d bloggers like this: