Page 388 - Westport Guide To Malaysia

380 USEFUL INFORMATION
A Resilient and Inclusive Financial System
By Anthony Dass
Malaysia has a resilient and inclusive dual financial system, with both conventional
and Islamic financial products being offered side by side.
A wide variety of financial products and services are offered to meet the evolving needs of businesses and households. These include
savings, investment, financing and financial protection.
The Malaysian financial system has been strengthened through consolidation and rationalization
since the beginning of
this century. Following
the Asian financial crisis
in mid-1997, Bank Negara Malaysia (BNM, Malaysia’s central bank), directed the merger of local banking institutions into ten anchor banks, which was completed in 2002. Further mergers were encouraged among
the local banking institutions to ensure competitiveness with international banks.
Building on the strong foundations and steady performance of the Islamic financial industry in Malaysia, the Malaysia International Islamic Financial Centre (MIFC) Initiative was introduced in August 2006 with the aspiration to make Malaysia a global Islamic finance marketplace. Recent developments in Islamic finance include value-based focus of the industry and greater efforts are being channelled towards three major areas – social resilience,
climate resilience and business empowerment.
Bank Negara Malaysia (BNM)
BNM, the central bank, regulates the Malaysian financial system including both banking and insurance sectors. It plays a significant role in developing financial system infrastructure and in advancing the Government’s financial inclusion agenda. In its role as the central bank, it:
• Promotes a sound, progressive and inclusive financial system.
• Formulates and conducts monetary policy in Malaysia.
• Regulates and supervises financial institutions which are subject to the laws enforced by it.
• Is the sole authority for issuing currency and managing the country's international reserves.
• Oversees payment systems as well as money and foreign exchange markets.
• Acts as financial advisor, banker and financial agent of the Government.
Banking intermediaries supervised by BNM comprise commercial banking institutions (including Islamic), investment banks (co-regulated with the Securities Commission)
and development financial institutions. Insurance companies and takaful operators are also supervised by BNM. The central bank also regulates the foreign exchange and money markets
Bank Negara Malaysia’s KL Headquarters. Completed in 1970, the Central Bank Complex is one of the finest examples of the brutalist school of architecture in Southeast Asia.