Deposit-taking co-operative

Deposit-taking co-operative

Deposit-taking co-operatives were a form of non-banking financial company (NBFC) in Malaysia. They were key to the economic and political interests of Malaysian Chinese, but some became insolvent which led to a run on banks in 1986.[1] The Cooperative Central Bank and 23 other deposit-taking co-operatives had their assets frozen by the Malaysian central bank, Bank Negara Malaysia.[2] Their crash caused a major political crisis when the Malay-dominated government was requested to bail out Chinese investors. The Malaysian cabinet eventually did approve a plan to reimburse the depositers in the failed co-operatives[3] but the co-operative sector of the economy never recovered.[4]

These institutions became identified as a type of pyramid scheme because of the need to continuously attract new depositors in order to meet obligations. Now, these schemes are outlawed and are known as Kuttu or Get-rich-quick schemes. On October 20, 2008 [5] Bank Negara Malaysia seized several more institutions: BuluhMas, ,Jazmeen (of Indian/Mamak origins), Noradz and Eastana Farms.

Officially, these deposit-taking co-operatives are subject to the financial acts governed by the Minister of Finance. Malaysia Companies house SSM have recently released the top 100 Co-ops list on their site for the public perusal.[6] Organisations which are not banks or do not have Koperasi and Berhad in their name are not allowed to take deposits. Some only allow memberships from their own related company and may allow family members to join in (commonly known as Friendly Mutual in the UK).

References

  1. ^ "Up Close and Personal with Datuk Seri Panglima Andrew Sheng". The Star Online. December 5, 2009. http://biz.thestar.com.my/news/story.asp?file=/2009/12/5/business/5243227&sec=business. Retrieved May 9, 2011. 
  2. ^ "Probe to be made public". New Straits Times. October 27, 1986. http://news.google.com/newspapers?id=ZdRHAAAAIBAJ&sjid=vY4DAAAAIBAJ&pg=5754,2701118&dq=malaysia+deposit-taking+cooperatives&hl=en. Retrieved May 9, 2011. 
  3. ^ "Kuala Lumpur Stock Exchange". New Straits Times. July 13, 1987. http://news.google.com/newspapers?id=R2NPAAAAIBAJ&sjid=Q5ADAAAAIBAJ&pg=6667,2607546&dq=malaysia+deposit-taking+cooperatives&hl=en. Retrieved May 9, 2011. 
  4. ^ "Fall of the mighty cooperatives". Malay Mail. November 10, 2009. http://www.mmail.com.my/content/18401-fall-mighty-cooperatives. Retrieved May 9, 2011. 
  5. ^ Bank Negara Malaysia
  6. ^ SSM



Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • Deposit insurance — Experiences from bank runs during the Great Depression led to the introduction of deposit insurance in the US …   Wikipedia

  • The Co-operative Group — Co operative Group Ltd. Type Consumer cooperative Founded 1863 (1863) Headquarters …   Wikipedia

  • Close Brothers Group — plc Type Public (LSE: CBG) Industry Banking …   Wikipedia

  • FSMA overview — Introduction Implementation of the Financial Services and Markets Act 2000 (FSMA) completed the vesting of supervisory responsibilities in the regulator, the Financial Services Authority (FSA), and rationalised and substantially replaced the… …   Law dictionary

  • List of Burn Notice characters — The main cast of Burn Notice. left to right: Sharon Gless as Madeline Westen, Bruce Campbell as Sam Axe, Jeffrey Donovan as Michael Westen, Gabrielle Anwar as Fiona Glenanne This is a list of fictional characters in the television series Burn… …   Wikipedia

  • Lois indiennes — Liste des lois adoptées par les gouvernements successifs en Inde depuis 1836, c est à dire au cours des périodes sous les régimes de l Inde britannique et du gouvernement de la république indienne. Sommaire 1 1836–1850 2 1851–1875 3 1876–1900 …   Wikipédia en Français

  • Liste de lois en Inde — Pour consulter un article plus général, voir : Droit en Inde. Liste des lois adoptées par les gouvernements successifs en Inde depuis 1836, c est à dire au cours des périodes sous les régimes de l Inde britannique et du gouvernement de la… …   Wikipédia en Français

  • Official Monster Raving Loony Party — Leader Alan Howling Laud Hope Founded …   Wikipedia

  • trust — A legal entity created by a grantor for the benefit of designated beneficiaries under the laws of the state and the valid trust instrument. The trustee holds a fiduciary responsibility to manage the trust s corpus assets and income for the… …   Black's law dictionary

  • Moscow gold — Northern façade of the building of the Bank of Spain in Madrid. Most of the gold reserves held inside until 1936 were sent to the Soviet Union during the Spanish Civil War. The term Moscow Gold (Spanish: Oro de Moscú), or alternatively, Gold of… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”