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Credit Risk
Malaysia: Lenders Need Not Assume Higher ECL for Rescheduled Debt
By Manesh Samtani | 26/03/2020
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.
Liquidity Risk
BNM Offers Regulatory Relaxations to Support Lending Activities
By Editors | 25/03/2020
Besides an NSFR relaxation, banks can drawdown on the capital conservation buffer, operate below 100% LCR, and utilise regulatory reserves they have set aside.
Liquidity Risk
BNM Orders Automatic Moratorium on Loan Repayments
By Editors | 24/03/2020
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.
Liquidity Risk
BNM Cuts Statutory Reserve Requirement for Banks
By Editors | 20/03/2020
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.
Emerging Prudential Risks
Central Banks Act to Mitigate Covid-19 Economic Threat
By Editors | 04/03/2020
The HKMA has responded to the US rate cut with a cut of its own. The RBA and BNM have also cut their key policy rates, while the BOJ focuses on asset purchases.
Structural Regulation
BNM Updates Regulatory Framework for Digital Banks in New Draft
By Editors | 03/03/2020
The new exposure draft incorporates a simplified regulatory framework for digital banks applicable during the initial three to five years of operations.
Trading & Investment
Malaysia Stimulus Package to Boost Financial Sector, SMEs
By Editors | 28/02/2020
The measures include an immediate 12-month waiver of listing-related fees for smaller companies, a new capital market investment fund, and additional financing options for SMEs.
Capital Adequacy
Malaysian Central Bank Publishes Inaugural D-SIBs List
By Editors | 06/02/2020
Maybank, CIMB and Public Bank have been designated as D-SIBs and will have to maintain extra capital buffers from 31 January 2021 to reduce the probability of failure.
KYC & CDD
BNM Publishes Consultation Response on New AML/CFT Framework
By Editors | 03/02/2020
BNM will publish further guidance on the methods used for verifying customer and beneficial owner information and for authenticating their documents.
Structural Regulation
Grab, Razer Considering Malaysia Digital Bank Licences – Report
By Editors | 24/01/2020
CIMB, Hong Leong Bank, Maybank, Grab, Razer, AirAsia, Axiata are reportedly considering submitting bids for Malaysian digital bank licences.
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