Findings from the Autoriti Monetari Brunei Darussalam (AMBD) from June 2015 to March 2016 show that around 3,000 or six per cent of 52,401 borrowings were at over 80 per cent in the Total Debt Service Ratio (TDSR).

The impact of the introduction of the TDSR was underscored by Yang Berhormat Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim, Minister at the Prime Minister's Office (PMO) and the Second Minister of Finance, in his speech at the National Savings Day ceremony and the launch of the Financial Planning Association of Brunei Darussalam (FPAB) yesterday at the Ministry of Finance.

"With the advancement of information technology and the existence of a financial sector that is increasingly dynamic and innovative, we consumers are easily exposed to new challenges in planning expenditure. Through attractive advertising or marketing programmes, people can easily be swayed to make purchases without taking into account one's needs as well as financial capabilities," he said.

In addition, the minister raised the point of dubious financial schemes or investments which have continued to lure victims into losing huge sums of money.

"We would like to advise the public to always be cautious and alert of the risks brought about by financial product offerings and investments that promise returns that are unreasonable and too high in a short time amount of time," he added.

The TDSR was implemented on June 8, 2015.

It measures the total monthly debt obligations as a proportion of an individual's net monthly income. It is meant to prevent an individual from borrowing beyond one's financial means.

With the TDSR in place, all banks and financial companies in the country now have to assess a customer's TDSR, credit history through credit reports from AMBD's Credit Bureau, before giving any loans or financing to the customer to ensure that banks and finance companies are only giving loans to customers who can afford to repay.

Also present at the ceremony were Dato Paduka Awang Haji Ali bin Haji Apong, Minister of Primary Resources and Tourism; Dato Paduka Awang Haji Mohamad Roselan bin Haji Mohamad Daud, Deputy Minister at the Prime Minister's Office; Dato Paduka Awang Haji Hisham bin Haji Mohd Hanifah, Deputy Minister of Finance; Awang Yusof bin Haji Abdul Rahman,

Managing Director of AMBD as well as members of the AMBD Board of Directors and senior government officers.

Source:
@BRUDIRECT.COM

by BruDirect.com

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