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Thursday March 26, 2009
MALAYSIA’S financial sector is on a much better footing than before, characterised by stronger capital levels and profitability positions.
Reforms and capacity-building measures will continue to be instituted to enable our financial institutions to withstand shocks.
Ongoing efforts to explore new markets and businesses for expansion and income diversification amidst a more challenging global financial outlook would position Malaysia’s financial sector strategically over the long run.
The emphasis in the months to come will be to reinforce the role of the financial sector in playing its intermediation function and ensuring adequate financing is being channelled to support viable economic activities.
Efforts will also be focused on strengthening the core foundations that accord resilience to the financial system.
These will be complemented by strengthened prudential regulations to mitigate excessive risk-taking and enhanced surveillance and oversight functions.
Cooperation arrangement within Malaysia will continue to be strengthened, establishing clear and unambiguous responsibilities to enable prompt and decisive measures to be taken, where appropriate.
To place Bank Negara in a greater state of readiness to face future challenges, the holistic review of the Central Bank of Malaysia Act 1958 was completed during the year.
The proposed Central Bank of Malaysia Act will provide clarity of the central bank roles and functions. It articulates the regulation and supervision of financial institutions and the promotion of a sound and progressive financial system.
In tandem with this, Bank Negara is also reviewing all key legislations governing financial institutions and intermediaries. The review was expected to be finalised by the end of this year.
The next phase of development for the financial sector will be spearheaded by Bank Negara’s liberalisation roadmap, in line with Phase 3 of the Financial Sector Master Plan.
Malaysia’s competitive advantage in Islamic finance will be strengthened, expanded and developed as opportunities emerge.
For Bank Negara statements click here
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