Malaysia

Industry veteran Jamie Lloyd Evans takes a detailed look at digital banking regimes in Asia, and the stated – and unstated – motivations behind them.

The messaging standard will transform the corporate announcements flow in Malaysia, favour interoperability with other marketplaces, and foster innovation.

BNM is allocating an additional 4 billion ringgit to its financing facilities for SMEs and lowering interest rates to help them sustain their operations and preserve jobs.

Brokers are no longer required to liquidate client holdings, make margin calls, or impose haircuts on collateral if client equity balances fall below 130%.

Given that regulatory action is driving debt rescheduling, lenders need not simply assume lifetime expected credit losses under MFRS 9 are relevant for all receivables.

Besides an NSFR relaxation, banks can drawdown on the capital conservation buffer, operate below 100% LCR, and utilise regulatory reserves they have set aside.

Credit card balances should be converted to term loans. Banks will have to maintain a minimum NSFR of 80% instead of 100% from 1 July.

The short-selling suspension will last until 30 April 2020. Annual licensing fees will be waived. CPE and professional training requirements will be eased.

The deadlines for market participants to comply with regulatory requirements relating to submissions and training requirements have been extended.

BNM has lowered the SRR ratio to the lowest level since April 2011, and is allowing principal dealers to recognise MGS and MGII up to 1 billion ringgit as part of SRR compliance.