HSBC

Kuala Lumpur, Monday, 6 November 2017 – Member financial institutions (FIs) of The Association of Banks in Malaysia (ABM), Association of Islamic Banking Institutions Malaysia (AIBIM) and Association of Development Finance Institutions of Malaysia (ADFIM) will assist and support customers that have been affected by the recent flood in the northern states.

As this is an utmost difficult time for those affected by the flood, our members remain committed to continue to offer assistance to customers, both individuals and businesses, in the flood-affected areas. Several banks have confirmed that their flood affected branches have been restored and are operational. For bank branches which have not yet been fully restored, customers can proceed to the nearest unaffected branches of their respective banks for their banking services. In the case of self-service machines, as some of the Automated Teller Machines (ATMs) and Cash/Cheque Deposit Machines (CDMs) may not yet be fully functioning, banks are allocating resources to ensure that over-the-counter services are available so that access to banking services to customers are not interrupted during this trying period of time.

The FIs will give top priority to all requests for assistance from customers who have been affected by the flood. Members of the public can contact ABM, AIBIM and ADFIM for any queries relating to banking services at the flood affected areas at:-

Kuala Lumpur, Thursday, 16 November 2017 – With reference to the article in a local media portal titled “Contracts that allow banks to oppress apartment buyers”, The Association of Banks in Malaysia (ABM) would like to provide clarification in relation to the allegations made.

Generally, for properties with title, in the event of default, the properties will be foreclosed through the relevant court process. In such cases, the borrowers’ rights for adequate notice and due process are determined by law. Conversely, for properties without title, it is common practice for banks to obtain a power of attorney from the borrower to allow the bank to sell the property in default. This arrangement is a precautionary step to protect the banks in case of such occurrence. However, banks do still provide adequate notice to the affected borrowers in respect of properties without title.

Our member banks are required to adhere to the standards set by the regulator in relation to the recovery of properties in default to ensure that it is made in a responsible manner. Further, banks are also required to engage with borrowers early for alternative repayment arrangements. It is a requirement for banks to have in place proper processes including sufficient notices before action is taken against defaulted borrowers. In particular, banks are required to comply with the following:-

1. Upon detecting any signs of repayment difficulty, banks will proceed to contact customers promptly and proceed to engage in early discussions towards alternative repayment measures to address financial difficulties;
2. Banks must make reasonable efforts to offer an alternative repayment plan that is appropriate to a customer’s changed circumstances and financial situation with the aim of resolving genuine repayment difficulties of the customer;
3. Banks must give adequate information for the customer to understand the implication of any proposed repayment arrangement including possible recovery actions if the customer continues to default such as legal and foreclosure proceeding; and,
4. Foreclosure on the customer’s property (all type properties) can only be initiated when other reasonable attempts to reach a resolution have been unsuccessful (including to conduct their own private sale before the bank does so).
5. Bank documents such as contracts, agreements and policy documents are required to be presented in plain language so that it is easy for readers to understand. In instances whereby, the use of legal and technical terminology cannot be avoided, the meaning of these terminologies would be explained or printed in a glossary for reference.

Thus, while there are different types of loan documentations applicable for housing loans, there are adequate rules to ensure the interests of the borrowers are protected.

Members of the public may contact ABMConnect at 1300-88-9980 or via eABMConnect at www.abm.org.my for any enquiries or complaints related to housing loan matters.

Kuala Lumpur, 20, November 2017 – With reference to the article in The Malay Mail titled “Rehda: Loosen loan restrictions”, The Association of Banks in Malaysia (ABM) would like to reiterate that its member banks, which comprise the commercial banks operating in Malaysia, have been and will continue to provide home loans to all eligible borrowers. Commercial banks are in the business of lending and will continue to extend financing to viable applicants.

The allegation that banks are imposing strict rules on purchasers applying for loans is not true. In determining the eligibility of an applicant, banks take into consideration various factors such as the capability of the applicant to repay the loan. Eligible applicants that meet the bank’s criteria will not be rejected.

This is evidenced by the increase of 8.8% in the outstanding housing loans by the banking system as at end-September 2017. Financing remains available for eligible borrowers, with 71% of housing loan borrowers being first-time owners of affordable homes.

Over the last 18 months, ABM has issued many press statements to clarify the various issues pertaining to housing loans. Please refer to ABM’s website, www.abm.org.my, for the said press releases. In addition, the public can obtain credible information pertaining to housing loans from www.housingwatch.my.

Our member banks have been and will continue to remain prudent and responsible in providing housing loans to eligible house buyers.