New Bank Negara rules will improve liquidity


PETALING JAYA: Bank Negara’s new governing rules on how local banks should account for deposits and other financial instruments are expected to improve liquidity within the financial system.

According to a Bloomberg report, following a circular by the central bank dated Jan 30, deposits which are subject to an early withdrawal penalty of at least 50% of accrued interest can be treated as “qualifying term funding”, or money that can be lent out.

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