BANK Rakyat is planning to expand its successful Ar-Rahnu Pawn Broking-i scheme to Indonesia and Brunei, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
He said talks were under way with cooperatives in the two countries, which have expressed their interest to work together with Bank Rakyat on the scheme.
Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/pplbank/Article/
Published: 2012/04/09
"We are in the process of obtaining an approval from Bank Negara Malaysia," he said after opening Bank Rakyat's annual general meeting here yesterday.
Ar-Rahnu gives immediate financing of up to 70 per cent of the value of the pawned gold while financing tenure is for six months.
Last year, it contributed a signficant 10 per cent to Bank Rakyat's business, which was previously dominated by its personal financing segment.
"A large number of Muslims are not very comfortable with the conventional pawn system and they find the Ar-Rahnu scheme more transparent and just," said Ismail Sabri.
He added that Bank Rakyat had to expand its other services like Ar-Rahnu as its dominance in the personal financing segment was facing competition from other non-bank financial institutions and commercial banks.
"Bank Rakyat and its member cooperatives need to diversify their sources of income."
Up until February, Bank Rakyat has channelled RM1.9 billion in financing to its cooperatives and RM276 million for the Ar-Rahnu business.
Last year, Bank Rakyat has increased the number of its Ar-Rahnu X'change franchise chain to 11, up from its key performance indicator (KPI) target of five, said Ismail Sabri.
For the year ended December 31, 2011, Bank Rakyat registered a record pre-tax profit of RM2.02 billion. Last month, it announced a record dividend of 20 per cent to members.
No comments:
Post a Comment