Depositors fear bank will sink

Depositors fear bank will sink

KUALA LUMPUR (AP): Hundreds of people lined up at branches of
one of Malaysia's largest savings banks for the second day
yesterday, heeding rumors that its president was ill and the
company was about to go under.

Bank Negara, Malaysia's central bank, issued a statement
saying Malaysia Borneo Finance Ltd., which has two million
customers and a solid record of 28 years, was sound and would
meet any depositor demands.

The run on one of Malaysia's major finance companies, which
has 151 branch offices nationwide, began Wednesday afternoon
after rumors in the stock market spread that MBf's chief
executive and president, Loy Hean Heong, was seriously ill and
the company would sink.

Loy, who has been ill for some time and is hospitalized in
Paris, issued a signed statement saying the rumors were attempts
by manipulators to undermine confidence in Malaysia's financial
system and share prices of the group's listed companies.