Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa

This study analyses mandatory suitability and affordability assessment embodied in the Guidelines on Responsible Financing issued by the Central Bank of Malaysia, focusing on conventional banks, Islamic banks and prescribed development financial institutions. It employed a doctrinal legal research m...

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Published in:Malaysian Journal of Consumer and Family Economics
Main Author: Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
Format: Article
Language:English
Published: Malaysian Consumer and Family Economics Association 2023
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178416125&doi=10.60016%2fmajcafe.v31.03&partnerID=40&md5=e0f243321937733ab04ea18d3e1229af
id 2-s2.0-85178416125
spelling 2-s2.0-85178416125
Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
2023
Malaysian Journal of Consumer and Family Economics
31

10.60016/majcafe.v31.03
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178416125&doi=10.60016%2fmajcafe.v31.03&partnerID=40&md5=e0f243321937733ab04ea18d3e1229af
This study analyses mandatory suitability and affordability assessment embodied in the Guidelines on Responsible Financing issued by the Central Bank of Malaysia, focusing on conventional banks, Islamic banks and prescribed development financial institutions. It employed a doctrinal legal research methodology whereby relevant primary and secondary sources of law were meticulously analysed. This study also employed comparative legal research methodology whereby the approach adopted in South Africa was scrutinised and compared against the practice in Malaysia. This study found that the Guidelines on Responsible Financing play an essential role in ensuring responsible lending among the banks, Islamic banks, and prescribed development financial institutions in Malaysia. Based on the analysis conducted, several recommendations were proposed to bolster the existing regulatory approach in imposing suitability and affordability assessment. The outcome of this study is imperative in reducing the situation of over-indebtedness among Malaysians and reinforcing the responsible lending regime in Malaysia. © 2018 Malaysian Consumer and Family Economics Association (MACFEA).
Malaysian Consumer and Family Economics Association
15112802
English
Article
All Open Access; Bronze Open Access; Green Open Access
author Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
spellingShingle Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
author_facet Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
author_sort Ilias I.I.; Hassan R.; Abu Bakar E.; Kassim S.
title Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
title_short Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
title_full Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
title_fullStr Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
title_full_unstemmed Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
title_sort Protection Against Over-Indebtedness: Appraising Suitability and Affordability Assessment in Malaysia and South Africa
publishDate 2023
container_title Malaysian Journal of Consumer and Family Economics
container_volume 31
container_issue
doi_str_mv 10.60016/majcafe.v31.03
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85178416125&doi=10.60016%2fmajcafe.v31.03&partnerID=40&md5=e0f243321937733ab04ea18d3e1229af
description This study analyses mandatory suitability and affordability assessment embodied in the Guidelines on Responsible Financing issued by the Central Bank of Malaysia, focusing on conventional banks, Islamic banks and prescribed development financial institutions. It employed a doctrinal legal research methodology whereby relevant primary and secondary sources of law were meticulously analysed. This study also employed comparative legal research methodology whereby the approach adopted in South Africa was scrutinised and compared against the practice in Malaysia. This study found that the Guidelines on Responsible Financing play an essential role in ensuring responsible lending among the banks, Islamic banks, and prescribed development financial institutions in Malaysia. Based on the analysis conducted, several recommendations were proposed to bolster the existing regulatory approach in imposing suitability and affordability assessment. The outcome of this study is imperative in reducing the situation of over-indebtedness among Malaysians and reinforcing the responsible lending regime in Malaysia. © 2018 Malaysian Consumer and Family Economics Association (MACFEA).
publisher Malaysian Consumer and Family Economics Association
issn 15112802
language English
format Article
accesstype All Open Access; Bronze Open Access; Green Open Access
record_format scopus
collection Scopus
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