KUALA LUMPUR: The decision to grant lending licences to property developers can add to the risks associated with rising household debt, says Fitch Ratings. Lending by property developers will fall outside the purview of Bank Negara. Household debt growth eased from a peak of 16.8% in 2011 to just 7.3% in 2015 – the slowest in eight years. Nevertheless, household debt is still rising and high by regional standards, at around 89% of gross domestic product. The systemic risk posed by the scheme will ultimately depend on the willingness of property developers to take part, and on the market’s willingness to fund developers.

Source: The Star September 16, 2016 01:30 UTC