{
  "title": "Malaysia: Financial Sector Assessment Program Monetary Liquidity Frameworks-Technical Note",
  "publication": "IMF Staff Country Reports, April 15, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-monetary-liquidity-frameworks-technical-note-41476",
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  "summary": "This technical note on Monetary Liquidity Frameworks on Malaysia’s inflation analyzes that it has returned to a more stable path, after some wider fluctuations before and during the global financial crisis. On the liability side, Malaysian banks’ liquidity is based largely on deposits.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Inflation in Malaysia \"has returned to a more stable path, after some wider fluctuations before and during the global financial crisis.\"\n- On the liability side, Malaysian banks’ liquidity is based largely on deposits.\n- The increase in foreign reserves at the Central Bank is a major driver of the growth of the Bank Negara Malaysia’s balance sheet.\n- Monetary operations with Islamic banks are carried out through specific Shariah-compliant instruments."
    },
    {
      "heading": "Analytical themes",
      "content": "- Liquidity frameworks and excess liquidity management:\n  - Emphasis on understanding liquidity position and liquidity condition across the banking sector.\n  - Role of open market operations and liquidity-releasing measures in the framework.\n- Central bank balance sheet dynamics:\n  - Foreign exchange and international reserves accumulation are identified as key factors expanding BNM's balance sheet.\n- Banking sector liabilities and risk management:\n  - Asset and liability management practices hinge on deposit funding; implications for liquidity risk.\n- Intersection with the global financial crisis:\n  - Historical context: wider fluctuations in inflation before and during the global financial crisis of 2008-2009."
    },
    {
      "heading": "Subjects and keywords covered",
      "content": "- Asset and liability management\n- Banking\n- Central banks\n- Excess liquidity\n- Financial crises\n- Global financial crisis of 2008-2009\n- International reserves\n- Liquidity\n- Open market operations"
    },
    {
      "heading": "Publication metadata highlights",
      "content": "- Publication date: April 15, 2014\n- Pages: 20\n- Volume: 2014\n- Issue: 096\n- Series: Country Report No. 2014/096\n- Stock No: 1MYSEA2014004\n- ISBN: 9781484352243\n- ISSN: 1934-7685\n\nInternational Monetary Fund. Monetary and Capital Markets Department \"Malaysia: Financial Sector Assessment Program Monetary Liquidity Frameworks-Technical Note\", IMF Staff Country Reports 2014, 096 (2014), accessed 8/16/2026.\n\n---\n\n Content in this bundle\n\n- IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014\n  - IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: April 15, 2014",
    "Series: IMF Staff Country Reports",
    "Inflation in Malaysia \"has returned to a more stable path, after some wider fluctuations before and during the global financial crisis.\"",
    "On the liability side, Malaysian banks’ liquidity is based largely on deposits.",
    "The increase in foreign reserves at the Central Bank is a major driver of the growth of the Bank Negara Malaysia’s balance sheet.",
    "Monetary operations with Islamic banks are carried out through specific Shariah-compliant instruments.",
    "Central bank balance sheet dynamics:",
    "Intersection with the global financial crisis:",
    "Publication date: April 15, 2014",
    "Pages: 20",
    "Volume: 2014",
    "Issue: 096",
    "Series: Country Report No. 2014/096",
    "Stock No: 1MYSEA2014004",
    "ISBN: 9781484352243",
    "ISSN: 1934-7685",
    "**IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014**"
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