In view of rumours concerning the financial state of MBf Finance Berhad which has led to withdrawals of deposits from its branches, Bank Negara Malaysia has issued the following statement:

"It is the primary function of Bank Negara Malaysia to maintain and promote a sound banking system and to safeguard funds deposited by the public with licensed banks and finance companies. Bank Negara Malaysia wishes to inform members of the public that MBf Finance Berhad is a finance company licensed under the Banking and Financial Institutions Act 1989. It is regulated and supervised by Bank Negara Malaysia.

The liquidity position of MBf Finance Berhad is not in question. If necessary, Bank Negara Malaysia will make sufficient funds available to the finance company to ensure that the finance company has sufficient cash to meet the withdrawals of depositors.

Bank Negara Malaysia would like to reassure depositors that there is no cause for alarm. The public should remain calm and not resort to premature withdrawals which could cause them to loose interest accrued. Bank Negara Malaysia is monitoring the situation very closely."