Pledge Companies in Malaysia

A pledge company is a type of company that is created for the purpose of holding securities as collateral for loans. The company is typically a special-purpose vehicle that is used to isolate the collateral from the borrower's other assets.

Pledge companies are common in Malaysia, where they are used by banks and other financial institutions to lend against shares and other securities. The use of a pledge company allows the lender to take possession of the collateral if the borrower defaults on the loan.
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