In 2018, the central bank collaborated with the World Bank and DFIs to develop an enhanced performance measurement framework for DFIs
KUALA LUMPUR: Bank Negara has expanded the eligibility criteria to clarify the focus of innovations that the Financial Technology (fintech) Regulatory Sandbox Framework aims to support.
It said that innovations should have clear potential to improve the accessibility, efficiency, security and quality of financial services.
"It should also enhance the efficiency and effectiveness of Malaysian financial institutions' management of risks, or address gaps in or open up new opportunities for financing or investments in the Malaysian economy," Bank Negara said in a statement.
The central bank on Tuesday also issued details of the fintech Regulatory Sandbox Framework.
It follows a one-month consultation on the proposed framework which was released on July 29, 2016.
Bank Negara said the regulatory sandbox will enable the experimentation of fintech solution in a "live" environment, subject to appropriate safeguards and regulatory requirements.
It said it had received over 60 comments and suggestions from various stakeholders including financial institutions, fintech companies, associations and other corporates.
Bank Negara said it had expanded the eligibility criteria following the comments and suggestions.
The framework will take effect immediately and is now open for application.
The central bank said applicants should be able to demonstrate that a product, service or solution has been developed to a functional stage and is ready for testing.
Bank Negara will inform applicants of their eligibility to participate in the sandbox within 15 working days of receiving a complete application. This will be followed by preparatory engagements between it and the applicant prior to testing.
Meanwhile, Aznan Abdul Aziz, chairman of Financial Technology Enabler Group, said the framework reflects Bank Negara's long standing policy in striking an optimal balance between promoting innovation, while preserving financial stability and protecting consumer interest.
"Based on the level of queries and feedback received during the consultation period, the central bank is encouraged and looks forward to receiving applications to test new ideas, deploy new solutions under the sandbox," he added. - Bernama
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