MALAYSIAN FINANCIAL SYSTEM

MALAYSIAN FINANCIAL SYSTEM

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Malaysian Financial Syst System em y

Structure of Malaysian Financial System

y

Financial Institutions

y

NonNon- Bank Finan Financial cial Intermed Intermediaries iaries









The Financial System Structure in Malaysia Financial System

Financial Institutions

Banking System 1. 2.

3.

Bank Negara Mala ysia Bank Institutions Commercial Banks Finance Companies Merchant Banks Islamic Banks Others Discount Houses

Non-Bank Financial Intermed iaries

Financial Market

Money & Foreign Exchange Market 1.

1. 2.

Provider & Pension Funds Insurance Companies (including Takaf ul) 3. De v elopment finance Institutions 4. Saving Institutions. National Saving Banks Co-operative societies 5 Others

2.

Money market Foreign exchange Market

Capital Market 1.

2.

Equity Equity Market Bond Market Public Debt Securities Private debt Securities









Banking Sys System tem y

y

Consists of Bank Negara Malaysia (Central Bank of Mala Malaysi ysiaa  BNM) , banking institutions ( commercial banks, finance companies, merchant bank and Islamic banks) and a miscellaneous group ( discount house hous e and representative office of foreign banks ). Largest of financial system ,accounting for >70% of the total assets of the financial f inancial system system.









Bank Negar Negara a Malaysia y

1959 under the Central Bank of Malaya Malaya Established on 26 January 19 Ordinance 1958. Objectives of BNM are as follows: y y y y

y

To issue currency and keep reserves reser ves to safeguard the value of the currency; To act as a banker and financial fin ancial adviser to the Government; Governmen t; To promote monetary stability and a sound financial structure; and To influences inf luences the credit situation to the t he advantage of Malaysia .

The objectives of BNM, in essence, encapsulate the importance of promoting economic growth with price stability and maintaining and financial stability .









Commercial y

y

y

Banks

The commercial banks are largest and most significant providers of funds in the banking system . Since they are involved in deposit-taking activities, activ ities, they are re quired to operate within the ambit of the provisions of the Banking and Financial Institutions Act 1989 (BAFIA )  under direct direct supervision supervision of Bank Negara Malaysia. Current 22 commercial banks (exclude Islamic banks ) of which 13 are











Commercial y

Banks

The main functions of commercial banks are to provide: provide: The mobilization of saving , deposits, surplus and idle funds through savings accounts, currents accounts, fixed deposit accounts, negotiable instruments of deposits and through other banking, financial and investment instruments . II. The provision of services and facilities for their customers and others members I.









Commercial No

Name

Bank

Ownership

1 Affin Bank Berhad

L ocal

2 Alliance Bank Berhad

Local

3 AmBank (M) Berhad)

Local

4 Bangk Bangkok Bank Berhad

Foreign

5Bank f A

i

M l

i B h d

F reign









Finance companies y

y

Finance companies companies form fo rm the second largest group of deposit taking institutions in Malaysia. Financial company initially governed governed by BNM through the









Finance Companies No

List of Finance Companies in Malaysia

1 Allian Alliance ce Financ Finance e Bhd. Bhd. 2 Ara Malaysian Finance Bhd.









Merchant Banks y

Merchant banks emerged emerged in the Malaysian banking scene in the 1970s, marking an important milestone in the development of the financial system alongside the



























Islamic Banks

























MALAYSIAN FINANCIAL SYSTEM

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