Tuesday, 17 April 2012

Beware of Banking System

PROCESS OF RELATIONSHIP



CCRIS  -  Is it a guide or extreme sources of information.  Banks in Malaysia used this useful info like a fool, by using it against the public.  Even with simple negative report or rectified situation is still seen as negative issue.
Utilisation of limit is being taken up almost immediately, however settlements are updated  after about 90 days.
Restructured facilities is been deemed the individual’s financial health is at stake eventhough being regularized after three years.  In the report that showed restructure of facilities, present application will 99% be rejected.  Banking system today is seen to see as though no one shall fall sick.   Banks never learn to nurse their clients instead of injecting poison to kill clients and creating Non-Performing Loans (NPL).  Bankers have reason to create NPL, will be discussed later.

CTOS -  Being used against customers only,  eventhough outdated or inaccurate.  There are banks that rigidly used this info as a masterpiece, not knowing that it is outdated, never updated by their fellow bankers like them from other bank.

BANK CHARGES - Never on reducing trend, always on the increase of reasons and amounts to find ways to charge public.  The bank never learn that their clients should be profitable in order for the bank to stay too.  But today banks are competing among banks to declare higher profits, ignoring that the profits they make are at the expense of their clients.  They never learn through the 1986 and 1990 crisis that if their client is sick, they will be sick too. If their client die, they may die too, if not rescued by authorities.

BANK CREDIT OFFICERS - NOT LOYAL TO BANK OR CLIENTS,  will only process loans when they are are being agreed/promised certain benefits either direct or through portion of legal fees.

CORRUPTION - NO DEAL NO WORK.  Is growing at a fast phase and very alarming. Anti Corruption Agencies should be looking into this matter seriously.  Corruption are through direct dealing and mostly are through percentage of legal fees.  Bar Council make the rule happily to deny discounts to clients had gave room to introduction fees be paid by legal firms to bank officers that give legal cases for new loan or for litigation to be taken on clients.  This is real blood sucking.

LEGAL FEES - APPOINTED SPECIAL ARRANGEMENT LEGAL FIRMS ONLY. Bank officers will not allow client to choose legal firms eventhough from the bank's panel list, as arrangements being made for certain percentage of the legal fees to them.  Bar council made the ruling that clients shall not be discounted of the legal fees, however today the discount are being discounted to the bank officers from the legal firm.  Bar Council and SPRM should audit legal firm fees and check the net left over to the legal firms as compare to the amount charged to loan borrowers.  This standard of corruption is very alarming,  Legal firms that are not willing to give away this portion to the bankers, will have to close shop if they are relying to the business from the banks.

NON-PERFORMING LOANS -  When clients have financial difficulties, bank will not accommodate to judge and negotiate for lower repayment amount, instead will recall the entire loan. Just imagine a client that may need to pay RM2000 for 20 years and had been paying very promptly for the past 10 years and due to unforeseen circumstances face financial difficulties.  Bank will just recall the entire outstanding instead of negotiating for lower monthly instalment.  Would it be logic, that one who is not able to pay the normal RM2,000 had been instructed to pay the entire outstanding amount of may be RM30,000.

RECOVERY - DESPITE OF FINANCIAL PROBLEMS

RECOVERY - BANK WILL NOT ACCOMODATE OR ASISST

RECOVERY NPL - CORRUPTION THROUGH LEGAL FEES

NON-DEDICATED PERSONNELS

BANK - PROFIT ORIENTED

BANK - NO SOCIAL OBLIGATION TO THE COUNTRY



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