A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth

1997 was a challenging year for the con duct of monetary policy. The first quarter of the year saw high levels of monetary growth driven by rapid growth in credit, which had also prevaile d during the most part of 1996. In addition, loans were increasingly channelled towards less productive acti...

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Main Author: Mohd Kassim, Radzuan
Format: Project Paper Report
Language:English
English
Published: 1997
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/8075/
http://psasir.upm.edu.my/id/eprint/8075/1/GSM_1997_31_.pdf
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author Mohd Kassim, Radzuan
author_facet Mohd Kassim, Radzuan
author_sort Mohd Kassim, Radzuan
building UPM Institutional Repository
collection Online Access
description 1997 was a challenging year for the con duct of monetary policy. The first quarter of the year saw high levels of monetary growth driven by rapid growth in credit, which had also prevaile d during the most part of 1996. In addition, loans were increasingly channelled towards less productive activities. Such developments raised several concerns. High levels of monetary expansion, if left unchecked, would have inflationary implications on the economy. Furthermore, the rise in loans to the property sector and to stock market-related activities increase d the exposure of banking institutions to these sectors, raising the potential risk to the soundness of the institutions. Given these concerns, Bank Negara Malaysia (BNM) has to introduce strategic measures, to ensure that the stability of the banking system was not undermined by excessive exposure to the relatively more volatile sectors of the economy.
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language English
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publishDate 1997
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spelling upm-80752023-12-06T07:28:34Z http://psasir.upm.edu.my/id/eprint/8075/ A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth Mohd Kassim, Radzuan 1997 was a challenging year for the con duct of monetary policy. The first quarter of the year saw high levels of monetary growth driven by rapid growth in credit, which had also prevaile d during the most part of 1996. In addition, loans were increasingly channelled towards less productive activities. Such developments raised several concerns. High levels of monetary expansion, if left unchecked, would have inflationary implications on the economy. Furthermore, the rise in loans to the property sector and to stock market-related activities increase d the exposure of banking institutions to these sectors, raising the potential risk to the soundness of the institutions. Given these concerns, Bank Negara Malaysia (BNM) has to introduce strategic measures, to ensure that the stability of the banking system was not undermined by excessive exposure to the relatively more volatile sectors of the economy. 1997 Project Paper Report NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/8075/1/GSM_1997_31_.pdf Mohd Kassim, Radzuan (1997) A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth. [Project Paper Report] Bank Negara Malaysia - Case studies Loan servicing - Case studies - Malaysia Banks and banking - Case studies - Malaysia English
spellingShingle Bank Negara Malaysia - Case studies
Loan servicing - Case studies - Malaysia
Banks and banking - Case studies - Malaysia
Mohd Kassim, Radzuan
A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title_full A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title_fullStr A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title_full_unstemmed A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title_short A Case Study on the Strategy of Bank Negara Malaysia to Curb Loan Growth
title_sort case study on the strategy of bank negara malaysia to curb loan growth
topic Bank Negara Malaysia - Case studies
Loan servicing - Case studies - Malaysia
Banks and banking - Case studies - Malaysia
url http://psasir.upm.edu.my/id/eprint/8075/
http://psasir.upm.edu.my/id/eprint/8075/1/GSM_1997_31_.pdf