The role of Bank Negara Malaysia in limiting imprudent consumption

Musa, Muhammad Adli (2015) The role of Bank Negara Malaysia in limiting imprudent consumption. Intellectual Discourse, 23 (S). pp. 475-494. ISSN 0128-4878 E-ISSN 2289-5639

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Abstract

This study identifies the role that Bank Negara Malaysia plays in regulating imprudent consumption. In doing so, the author reviews the Guidelines on Responsible Financing introduced by the Bank in 2012 to regulate the consumer credit market. Since consumers are highly dependent on credit to purchase what they desire, the Bank tightened lending procedures. The author also argues that despite the claimed ethical superiority of Islamic finance, there is no apparent difference when it comes to providing loans (or rather financing) to consumers. The findings of this study suggest that such procedures reduced the growth of household borrowing and consumer loans/ financing. As such, the study concludes that Bank Negara Malaysia has an effective role to play in limiting the negative effects of imprudent consumption.

Item Type:	Article (Journal)
Additional Information:	7412/48712
Uncontrolled Keywords:	Bank Negara Malaysia; consumerism; imprudent consumption; Islamic finance; responsible financing
Subjects:	H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Qur’an and Sunnah
Depositing User:	Mr Muhammad Adli Musa
Date Deposited:	20 Jan 2016 09:26
Last Modified:	18 Jul 2016 08:23
URI:	http://irep.iium.edu.my/id/eprint/48712

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