Lawyerment Homepage – Malaysian Financial Law – Banking Law – Bank Negara – BAFIA(banking and financial institutions act) Bank Negara Malaysia (BNM) is empowered to act as the regulator of banking institutions under the Financial Services Act (FSA), the. THE BANKING AND FINANCIAL INSTITUTIONS ACT, Introduction The in relation to deposit taking.e. from any person in Malaysia or outside Malaysia In.

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Where the Bank is of the opinion that any of the following circumstances exist in respect of an institution: The Bank may issue one or more of the directions specified in section if the Bank is of the opinion that an institution, its director, malwysia executive officer or senior officer—. Briefly, the method of calculating the LCR is by malayssia the stock of HQLA and dividing it by the total net cash outflows over the next 30 calendar days. A bank or financial institution. Worldwide Europe European Union U.

BNM has not made available any formal template for an application for a banking, Islamic banking, investment banking or Islamic investment banking licence. Business record and experience of the applicant.

Banking regulation in Malaysia: overview

Do you have a Question or Comment? Appointment and remuneration of liquidator. Notice of the acquisition of a substantial shareholding must be given to the company within three days in the case of a listed company and within five days in any other case from the acr a person becomes a substantial shareholder.

What is the resolution regime for banks? Has a good credit ,alaysia by an acceptable rating agency. The prior approval of the Minister, acting on the recommendation of BNM, is required for any agreement or arrangement for the reconstruction or amalgamation of a bank.


Power to remove director or chief executive officer of financial holding company. The soundness and feasibility of the plans of the applicant for the future conduct and development of the business of the person to be authorized. Forms of banks 6. Regulation of systemically important financial institutions SIFIs. International Islamic banks are essentially the same as Islamic banks except that their Islamic banking business must be carried on in currencies other than the Malaysian Ringgit RM.

A template application form for a Labuan banking licence can be found on the Labuan FSA website at bafua. The exceptions provided under the statute are the following: Power of bank to issue certificate of finality.

Tournier v National Provincial and Union Bank of England is a landmark case which laid down and defined the scope of a banker’s duty of secrecy and confidentiality to its customer. Division 2 Remedies for misrepresentation. Bank may approve more than one financial holding company.

Bank Negara Malaysia

Qualified privilege and duty of confidentiality Act Real Estate and Construction. The Bank may issue guidance in writing to any person or to any class, category or description of persons consisting of such information, advice or recommendation as it considers appropriate—. Promotes the malsysia of effective and efficient development financial institutions.

Subject to sectionthe Bank may, by an order in writing, remove a director, chief executive officer or senior officer from office or employment in an institution if the Bank is of the opinion that the director, chief executive officer or senior officer of the institution—.

Decision of Minister to be final. When a customer successfully sues a banker for breach of duty of secrecy, the amount of damages which he is entitled to recover depends on whether he is able to establish the actual extent of the damages malaaysia had suffered as a result of the disclosure. Approval required for reconstruction or amalgamation of licensed person.


Capital control Discount rate Baffia rates Money creation Open market operation Sovereign wealth fund. Division 2 Administrative actions. Investigating officer deemed to be public servant and public officer Act Restriction on dealings of authorized persons. No director, officer, agent or contributory, past or present, of a licensed insurer which is being wound up after its cessation of insurance business, shall mqlaysia to issue a policy.

The person to be authorized will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of the person to be authorized. There must be a provision in the articles of association of the bank for the establishment of a Shariah committee. The Bank may, with the concurrence of the Minister, by an order published in the Gazetterevoke a certificate of finality if the Bank malaysis of the opinion that—.

Restriction on voluntary winding up.

Banking regulation in Malaysia: overview | Practical Law

Notice of cessation as appointed actuary. Consequences of failing to comply with directions. Pre-contractual duty of disclosure for insurance contracts other than consumer insurance contracts. According to section 1 which is read together with section 3 of the FSA, the duty of confidentiality encompasses a person who is not just a bank officer but even a kalaysia party. What is the capital adequacy framework that applies for banks?

Whether the application will be in the best interest of Malaysia, having regard to the:.

Lodgment of amount not distributed with Registrar of Unclaimed Moneys. What liquidity requirements apply? Establishment or relocation of office of authorized persons.