Bank Negara Malaysia issues policy document on Disposal and Purchase of Impaired Loans/Financing

30 July 2024

On 25 June 2024, Bank Negara Malaysia issued a policy document on Disposal and Purchase of Impaired Loans/Financing. The policy document sets out requirements and guidance with respect to the disposal and purchase of impaired loans/financing by banking and non-banking institutions with the aim to:

• provide a larger pool of buyers for impaired loans/financing market;

• strengthen conduct requirements to provide appropriate protection to borrowers whose loans/financing are sold to non-bank buyers; and

• promote greater efficiency in the disposal/purchase of impaired loans/financing.