Malaysia Real Estate

trojan · Joined: 17 Mar 2006 Posts: 133

Wondering, if a bank, that we engaged for housing loan, bankcrupts what will be the impact on the property and the housing loan?

TQ.

yykalex · Joined: 14 Mar 2008 Posts: 156

trojan · Joined: 17 Mar 2006 Posts: 133

what happened if no financial instituition want to buy?
btw, is there any clause in the loan agreement that mentioned about this?

Just asking coz, the current financial crisis in US firms... makes me feels the vulnurability of our local financial industry too Cool

yykalex · Joined: 14 Mar 2008 Posts: 156

trojan,

First of all, our country financial market system is different from US financial market system. US financial market is what we so called "perfect market" in economy term, where all financial institutions have free & fair market competition. And we look into our country where BNM is limiting financial institutions and the market via BAFIN ACT, is an "imperfect market".

Secondly, US sub-prime market crisis which lead to today financial crisis doesn't affect local bank at all. Only those international banks would feel the pain.

Lastly, our government & BNM are very well controlling those banks operating in Malaysia. For those "bumiputra banks" which are not operating well always would get "help" from government where government pump in billion of dollars to secure the banks' crisis. Where the money come from? you know i know la...

For force-sales, it is a contract between bank and bank which governed by BNM. Bank loan agreement is not include such a clause because the loan agreement is a contract between the bank and you.

In local market, recently CIxB bank has just sold part of it assets (NPL) to one of an international bank (also operate in M'sia) counting in billion. For house owner, no impact.

Please correct me if i m wrong/missing something.