BNM issues policy document on Disposal and Purchase of Impaired Loans/Financing

29 July 2024

On 25 June 2024, BNM issued a policy document on Disposal and Purchase of Impaired Loans/Financing. The policy document sets out the requirements and guidance with respect to the disposal and purchase of impaired loans/financing by banking and non-banking institutions. The policy document aims to (a) provide a larger pool of buyers for impaired loans/financing market, (b) strengthen conduct requirements to provide appropriate protection to borrowers whose loans/financing are sold to non-bank buyers, and (c) promote greater efficiency in the disposal/purchase of impaired loans/financing.