Page 271 - Special Topic Session (STS) - Volume 3

STS543 Muizz A. et al.
limited financial buffers and susceptibility to potential macroeconomic or
financial shocks, lowering their debt obligations to more sustainable levels
would be imperative.

Chart 1: Contribution to Growth Chart 2: Annual Growth of
of Household Debt by Purpose Malaysian House Price Index

Chart 3: Aggregate Leverage by Chart 4: Average Growth of
Income Group House Prices Purchased by
Borrowers

Source: Bank Negara Malaysia and National Property Information Centre

Concerns over the sustainability of household debt and housing market
led the Government and the Bank to implement a series of measures aimed
at addressing risks associated with excessive accumulation of household
debt and to reinforce responsible lending practices by both banks and NBFIs
(Table 1). The series of policies implemented between 2010 and 2013
(shaded rows in Table 1) will be the focus of this study.

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