The central bank said it was doing its job to manage household debt as it was expecting debt levels to increase this year.
“We are a banker and adviser to the Government, playing an active role in advising on macroeconomic policies and managing the public debt.
“The guidelines are meant to avoid the excessive accumulation of household debt, particularly among households that are more vulnerable to income shocks,” it said in a statement, adding it did not see a need to review the guidelines.
(Italic: WELL SAID by BANK NEGARA!)
Bank Negara also said that its job was to bring about financial system stability while fostering a sound and progressive financial sector within the country and at the same time promote a prudent conduct of monetary policy.
The central bank added that Western economies such as Australia and the United States had also duly adopted relevant measures after the experience of the US subprime financial crisis and the eurozone debt crisis.
Perodua and Proton Edar Dealers Association Malaysia (Peda) recently indicated, from the tone of statements made to the press, that they were not too happy with the responsible lending guidelines which have come into force since the beginning of this year.
In a statement issued recently, Perodua put the blame on Bank Negara's responsible lending guidelines after its year-on-year sales declined by 11% in March from 18,000 sold in the same month last year.
(BOLD: WHAT A SELFISH PEDA businessmen)
However, Perodua's sales in the first quarter this year have stabilised, easing 2.2% to 44,700 vehicles for the first three months of this year from 45,700 vehicles registered in the first quarter of 2011.
Peda president Armin Baniaz Pahamin said it would meet with local banks to iron out issues relating to Bank Negara's responsible lending guidelines.
For the buyers, what's your problem?