Malysia Banking System
An overview of banking sector in Malaysia
In the following, an overview on the banking system of Malaysia and the influential institutions including the Central Bank, Commercial Banks, Investment Banks and Islamic Banks will first be mentioned. Then, it will give a glance of the recent trend of the banking system in Malaysia.
Introduction
Banking system consists of Central Bank (Bank Negara Malaysia), banking institutions and other groups. The banking institutions mainly include commercial banks, investment banks and Islamic banks, while the other groups consist of representative offices of foreign banks and many others. All the banks including the Islamic Banks are operating through a network of more than 2,651 branches across the country. There are also six Malaysian banking groups have appeared in 19 other countries through representative offices, branches, subsidiaries and joint ventures. There are also 22 foreign banks, which maintain representative offices in Malaysia. They facilitate information exchange between business interests in Malaysia and their counterparts.[1]
1. The Central Bank
Bank Negara Malaysia, established under the Central Bank of Malaya Ordinance in1959, is the central bank of Malaysia. It acts as a sole monitor of the Malaysia banking system. The functions of Bank Negara Malaysia are issuing currency, safeguarding the value of the currency by keeping enough reserves, being as a financial adviser and banker to the Government, promoting monetary stability and a sound financial structure, influencing the credit situation for the stability of the country.[2] In November 2010, it holds an international reserve of RM 326.4 billion (equivalent to USD 105.8 billion), which is sufficient to support 4 times the short-term external debt and finance 8.6 months of retained imports.[3]
The Bank is given powers bound by laws to monitor and supervise the banking institutions and other non-bank financial intermediaries. The other
In the following, an overview on the banking system of Malaysia and the influential institutions including the Central Bank, Commercial Banks, Investment Banks and Islamic Banks will first be mentioned. Then, it will give a glance of the recent trend of the banking system in Malaysia.
Introduction
Banking system consists of Central Bank (Bank Negara Malaysia), banking institutions and other groups. The banking institutions mainly include commercial banks, investment banks and Islamic banks, while the other groups consist of representative offices of foreign banks and many others. All the banks including the Islamic Banks are operating through a network of more than 2,651 branches across the country. There are also six Malaysian banking groups have appeared in 19 other countries through representative offices, branches, subsidiaries and joint ventures. There are also 22 foreign banks, which maintain representative offices in Malaysia. They facilitate information exchange between business interests in Malaysia and their counterparts.[1]
1. The Central Bank
Bank Negara Malaysia, established under the Central Bank of Malaya Ordinance in1959, is the central bank of Malaysia. It acts as a sole monitor of the Malaysia banking system. The functions of Bank Negara Malaysia are issuing currency, safeguarding the value of the currency by keeping enough reserves, being as a financial adviser and banker to the Government, promoting monetary stability and a sound financial structure, influencing the credit situation for the stability of the country.[2] In November 2010, it holds an international reserve of RM 326.4 billion (equivalent to USD 105.8 billion), which is sufficient to support 4 times the short-term external debt and finance 8.6 months of retained imports.[3]
The Bank is given powers bound by laws to monitor and supervise the banking institutions and other non-bank financial intermediaries. The other
References: Bank Negara Malaysia. (2005). Guidelines on Investment Banks. Retrieved December 3,2010, from http://www.bnm.gov.my/guidelines/01_banking/04_prudential_stds/12_investmentbank_guideline.pdf Bank Negara Malaysia Banking and Financial Institutions Act 1989 (BAFIA). Retrieved December 3, 2010. Malaysia Industrial Development Authority. (2010). Invest in Malaysia. Retrieved December 6, 2010, from http://www.mida.gov.my/en_v2/index.php?page=banking-system Malaysia Property Partners Robinson, Alan. (1994). Malaysia: Building on Success. Lodon: Euromoney Publications. Shaping Islamic Finance Together. (2010, Nov 10). About MIFC. Retrieved December 6, 2010, from http://www.mifc.com/index.php?ch=menu_exp&pg=menu_exp_ovr The Association of Banks in Malaysia 马来西亚继续放宽外国投资政策. (2009, August 1). Retrieved December 5,2010, from http://www.caijing.com.cn/2009-07-01/110191844.html ----------------------- [1]Malaysia Industrial Development Authority. (2010).Invest in Malaysia. Retrieved December 6, 2010, from http://www.mida.gov.my/en_v2/index.php?page=banking-system [2] Robinson, Alan. (1994). Malaysia: Building on Success. Lodon: Euromoney Publications. [3] Bank Negara Malaysia. (2010). International Reserves of BNM as at 30 November 2010.Retrieved December 7, 2010, from http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2178 [4] Lee, H.L. (1987). Central Banking in Malaysia: a Study of the Development of the Financial System and Monetary Management [5] Malaysia Industrial Development Authority.(2010).Invest in Malaysia. Retrieved December 6, 2010, from http://www.mida.gov.my/en_v2/index.php?page=banking-system [6] Alibaba.com. (2009, April 26). Malaysia opens financial sector but banks constrained. Retrieved December 3, 2010, from http://news.alibaba.com/article/detail/markets/100091978-1-update-2-malaysia-opens-financial-sector.html [7] The Malaysia Insider [8]Banking and Financial Institutions Act 1989 (BAFIA). Retrieved December 3, 2010. [11] What is Islamic Banking? (2010) Retrieved December 5,2010, from http://www.bankinginfo.com.my/_system/media/downloadables/islamic_banking.pdf [12]Association of Islamic Banking Institutions Malaysia. (2010). Islamic Finance. Retrieved December 5,2010, from http://aibim.com/content/view/17/34/ [13] Shaping Islamic Finance Together. (2010, Nov 10). About MIFC. Retrieved December 6, 2010, from http://www.mifc.com/index.php?ch=menu_exp&pg=menu_exp_ovr [14] Malaysia Industrial Development Authority.(2010).Invest in Malaysia. Retrieved December 6, 2010, from http://www.mida.gov.my/en_v2/index.php?page=banking-system [15] Malaysia Property Partners. (2010) Banks in Malaysia. Retrieved December 8, 2010, from http://www.malaysianpropertypartners.com/malaysian-investments/finance/banks-in-malaysia/ [16]The Association of Banks in Malaysia