BNM : Initiatives to Strengthen Consumer Protection

PEN: 12/04/16 (BN)

Consumer protection is an integral component of a vibrant banking system. In
meeting this objective, Bank Negara Malaysia has completed an extensive
study to ensure that the public has access to banking services at reasonable
costs, and will be issuing guidelines to govern the imposition of fees and
charges by banking institutions. With these guidelines, effective 1 February
2005, banking institutions will be required to offer basic banking services
at minimal costs. Further details will be announced in due course.

In addition, Bank Negara Malaysia has undertaken a holistic approach in
strengthening consumer protection by:

- Providing effective mechanisms for consumers to seek redress. In this
regard, banking institutions have established complaint units to handle
customer grievances. In addition, an enhanced Financial Mediation Bureau
will begin operation in January 2005;

- Putting in place transparency and disclosure requirements that will ensure
customers are given adequate and timely information about the features and
costs of financial products and services to facilitate informed decisions.

While the guidelines on the imposition of fees and charges seek to protect
consumer interest, a balance is made between protecting consumer interest
and providing an environment that promotes innovation and provision of
enhanced services by banking institutions.

Bank Negara Malaysia
09 December 2004