Malaysia: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Basel Core Principles for Effective Banking Supervision
IMF Staff Country Reports, March 8, 2013
Source details
- Canonical URL
- Malaysia: Publication of Financial Sector Assessment Program Documentation—Detailed Assessment of Basel Core Principles for Effective Banking Supervision
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Bibliographic details
- Published: March 8, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475514773.002
Summary
- The Bank Negara Malaysia (BNM) employs a well-developed risk-focused regulatory and supervisory regime.
- Despite this, a clear gap exists in the application of the supervision and regulation regime to financial holding companies.
- BNM is to be commended for its thoughtful and comprehensive self-assessment and efforts to help draft legislative changes and to make administrative changes to address the areas of improvement revealed by the self-assessment.
- Improvements should be made in the transparency of elements of BNM’s supervisory expectations, its domestic coordination and information-sharing arrangements, and legal protection for staff.
Major findings and thematic issues
- Regulatory and supervisory regime:
- BNM employs a well-developed risk-focused regulatory and supervisory regime.
- A clear gap exists in the application of the supervision and regulation regime to financial holding companies.
- Self-assessment and follow-up:
- BNM conducted a thoughtful and comprehensive self-assessment.
- BNM made efforts to help draft legislative changes and to make administrative changes to address identified areas of improvement.
- Areas for improvement:
- Transparency of elements of BNM’s supervisory expectations.
- Domestic coordination and information-sharing arrangements.
- Legal protection for staff.
Subjects and keywords
- Subject: Banking, Capital adequacy requirements, Credit risk, External audit, Financial regulation and supervision, Market risk, Operational risk, Public financial management (PFM), Stress testing
- Keywords: banking group, banking institution, BNM guideline, BNM supervisor, Capital adequacy requirements, country risk, CR, credit risk, External audit, Global, ISCR, Market risk, Operational risk, risk management, risk specialist, senior management