Bank Negara Malaysia

KYC & CDD

The Four e-KYC Models Around the World

By Claus Christensen | 05/04/2020

Claus Christensen at Know Your Customer Ltd identifies four e-KYC models in use across the world, but says that harmonisation and consolidation of these schemes is likely.

Credit Risk

Malaysia: BNM Enhances Financing Facilities for SMEs

By Editors | 30/03/2020

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.

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.