## Malaysia: Financial Sector Assessment Program Monetary Liquidity Frameworks-Technical Note

_IMF Staff Country Reports, April 15, 2014_

## Source details

**Canonical URL:** [Malaysia: Financial Sector Assessment Program Monetary Liquidity Frameworks-Technical Note](https://www.imf.org/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-monetary-liquidity-frameworks-technical-note-41476)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-monetary-liquidity-frameworks-technical-note-41476/index.md)
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## Bibliographic details
- Published: April 15, 2014
- Series: IMF Staff Country Reports

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### Summary findings
- 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.

### Analytical themes
- Liquidity frameworks and excess liquidity management:
  - Emphasis on understanding liquidity position and liquidity condition across the banking sector.
  - Role of open market operations and liquidity-releasing measures in the framework.
- Central bank balance sheet dynamics:
  - Foreign exchange and international reserves accumulation are identified as key factors expanding BNM's balance sheet.
- Banking sector liabilities and risk management:
  - Asset and liability management practices hinge on deposit funding; implications for liquidity risk.
- Intersection with the global financial crisis:
  - Historical context: wider fluctuations in inflation before and during the global financial crisis of 2008-2009.

### Subjects and keywords covered
- Asset and liability management
- Banking
- Central banks
- Excess liquidity
- Financial crises
- Global financial crisis of 2008-2009
- International reserves
- Liquidity
- Open market operations

### Publication metadata highlights
- 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

*International 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.*

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## Content in this bundle

- **IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014**
  - [IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1496.pdf.md){rel="alternate" type="text/markdown"}
  - [IMF Country Report No. 14/96; Malaysia Financial Sector Assessment Program; April 2014 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1496.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-monetary-liquidity-frameworks-technical-note-41476_