ID :
23961
Sat, 10/11/2008 - 17:28
Auther :
Shortlink :
https://oananews.org//node/23961
The shortlink copeid
M'SIA STRONG IN SAFEGUARDING BANKING AND FINANCIAL INSTITUTIONS
KUALA LUMPUR, Oct 11 (Bernama) -- After learning from the tough experiences
during the Asian financial crisis in 1997-1998, Malaysia has become stronger in
safeguarding its banking and financial institutions, says MCA economic bureau
chairman Fong Chan Onn.
He said our financial system has been fortunate because Malaysia was not
significantly exposed to the weakness of foreign mortgages.
"Our banks are not exposed to that, therefore they are not much affected.
Having said that, our financial systems are strong," he told Bernama when asked
to comment on the impact of the financial crisis on Malaysia.
He also said that local banks did not buy investments based on the
valuation of the US mortgages, which are called collateralised debt obligations
(CDOs).
CDOs are an unregulated type of asset-backed security and structured credit
products. They are constructed from a portfolio of fixed-income assets.
According to Fong, Malaysia is good in monitoring the performance of its
banking and financial institutions.
Describing the financial crisis as "financial tsunami", the former Human
Resources Minister said majority of the Malaysian society was still not fully
aware of the impending consequences of the crisis which arose out of the United
States and intensified two weeks ago.
"We can see the impact being felt immediately after that in Western Europe,
the financial sectors and now it has spread to Asia and other parts of the
world," he said.
Fong said there was a need to quickly have more discussions and
explanations on the causes of the financial crisis and what could be done as an
individual,company and nation.
"It's going to affect everyone, includings individuals. Whether you are
going to like it or not, this financial tsunami is going to have adverse impact
on the values of all the assets that we are holding now," he said.
"We need to explain to the public at large the whole picture, including the
causes and what are the likely consequences. So that as individuals and
companies, they can take immediate action to safeguard their assets to face
it," he added.
-- BERNAMA
during the Asian financial crisis in 1997-1998, Malaysia has become stronger in
safeguarding its banking and financial institutions, says MCA economic bureau
chairman Fong Chan Onn.
He said our financial system has been fortunate because Malaysia was not
significantly exposed to the weakness of foreign mortgages.
"Our banks are not exposed to that, therefore they are not much affected.
Having said that, our financial systems are strong," he told Bernama when asked
to comment on the impact of the financial crisis on Malaysia.
He also said that local banks did not buy investments based on the
valuation of the US mortgages, which are called collateralised debt obligations
(CDOs).
CDOs are an unregulated type of asset-backed security and structured credit
products. They are constructed from a portfolio of fixed-income assets.
According to Fong, Malaysia is good in monitoring the performance of its
banking and financial institutions.
Describing the financial crisis as "financial tsunami", the former Human
Resources Minister said majority of the Malaysian society was still not fully
aware of the impending consequences of the crisis which arose out of the United
States and intensified two weeks ago.
"We can see the impact being felt immediately after that in Western Europe,
the financial sectors and now it has spread to Asia and other parts of the
world," he said.
Fong said there was a need to quickly have more discussions and
explanations on the causes of the financial crisis and what could be done as an
individual,company and nation.
"It's going to affect everyone, includings individuals. Whether you are
going to like it or not, this financial tsunami is going to have adverse impact
on the values of all the assets that we are holding now," he said.
"We need to explain to the public at large the whole picture, including the
causes and what are the likely consequences. So that as individuals and
companies, they can take immediate action to safeguard their assets to face
it," he added.
-- BERNAMA
