Credit card debt not critical in KL

Credit card debt not critical in KL

KUALA LUMPUR: Malaysia's central bank sees no cause for concern despite a rise in the number of credit card-related bankruptcies, a news report said on Saturday.

The 1,397 bankruptcies last year due to credit card debt constituted only 8.6 percent of the total number of bankruptcy cases, the central bank said in a statement reported by the New Straits Times newspaper.

Similar bankruptcies for 2003 totaled 1,152, which accounted for 9.3 percent of total bankruptcies.

The central bank also noted that credit card debt accounted for only 2.7 percent of total loans outstanding. "Despite its growing prominence as a payment instrument, credit card debt is not a major concern," it said. -- AP