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Malaysia Financial System

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Malaysia Financial System
FIN324: Banking Operations & Documentation CH# 1: The Financial System

The Structure of Malaysian Financial System

The Malaysian Financial System


Financial Institutions:Institutions:Banking System Non-Bank Financial Intermediaries Non-



The Financial Markets (4 types)

1

The Structure of Malaysian Financial System (1) FINANCIAL INSTITUTIONS Banking Systems [monetary inst] Bank Negara Malaysia Banking Institutions a. Comm. Bks (incl. Fin Cos & Insurance and Takaful) and Islamic Bks b. Merchant Bks [non-$tary inst] [nonOthers a. Discount Houses [non-$tary inst] [nonb. Rep. Office of Foreign Bks c. Offshore Banks in Labuan IOFC d. Credit Guarantee Corporation [non-$tary inst] [nonNon-Bank Financial Intermediaries NonProvident and Pension Funds Development Financial Institution Savings Institutions a. National Savings Bank b. Co-operative Societies CoOthers a. Unit Trusts b. Pilgrims Fund Board c. Housing Credit Institutions d. Cagamas Bhd. e. Leasing Cos. f. Factoring Cos. g. Venture Capital Cos.

Structure of the Malaysian Financial System (2) FINANCIAL MARKETS Money & Foreign Exchange Markets Money Market Foreign Exchange Market Capital Markets Equity Market Bond Market a. Public Debt Securities b. Private Debt Securities Derivative Markets Commodity Futures Bursa Malaysia (KLSE) CI Futures KLIBOR Futures Offshore Market Labuan International Offshore Financial Center (IOFC)

The Banking System


The Monetary Institutions:-principal Institutions:liabilities = $ Central Bank = BNM Commercial Banks



The Non-Monetary Institutions:NonInstitutions:principal liabilities = near$ closely linked to $tary inst Merchant Banks,Discount House,CGC

2

The NBFIs


The largest group – provident, pension & insurance funds
- mobilize members’ resources in the form of members’ provident & pension contributions & insurance premium to the retirement & ins. schemes. schemes.



The largest source of non-inflationary nonlong term
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