Central Bank of Malaysia

Bank Negara Malaysia, the central bank of this south Asian country, was set up on 26th January, 1959. It was established as per the Central Bank of Malaysia Act 1958 (CBA 1958), which has been replaced by the Central Bank of Malaysia Act 2009 that became operational from 25th November 2009.

Central Bank of Malaysia – Profile:
The Bank Negara Malaysia is a constitutional organization and is totally owned by the Government of Malaysia. Its paid up capital has gone up progressively over the years and at present it stands at 100 million Malaysian Ringgits. The Ministry of FINANCE is the reporting authority of the bank and has to inform the ministers regarding policies to be adopted in the financial and monetary sectors.

Central Bank of Malaysia – Roles and Functions:
The Bank Negara Malaysia performs the following functions and roles:

  • Making monetary policies
  • Financial inclusion
  • Stabilizing financial system
  • Adviser and banker to the government
  • Developmental role

The bank operates in 7 functional areas and is assisted by 39 units or departments in these domains:

  • Economic and monetary policy
  • Supervision
  • INVESTMENT and operations
  • Organizational development
  • Regulation
  • Communications
  • Payment systems

Central Bank of Malaysia – Initiatives:
The Malaysian reserve bank manages several initiatives for educating the common public and providing them with greater access to its services. It also operates a couple of financial counseling and advising programs:

  • bankinginfo
  • insuranceinfo
  • Complaint Management and Advisory
  • Agensi Kaunseling Dan Pengurusan Kredit (AKPK)
  • Financial Mediation Bureau

Central Bank of Malaysia – Laws:
The apex banking institution of Bank Negara Malaysia operates as per the following laws:

  • Central Bank of Malaysia Act 2009
  • Development Financial Institutions Act 2002 (Act 618)
  • Banking and Financial Institutions Act 1989 (BAFIA)
  • Anti-Money Laundering and Anti-Terrorism FINANCING Act 2001 (Act 613)
  • Exchange Control Act 1953
  • Payment Systems Act 2003 (Act 627)
  • Islamic Banking Act 1983
  • Money-Changing Act 1998 (Act 577)
  • Insurance Act 1996
  • Money Services Business Act 2011
  • Takaful Act 1984

Central Bank of Malaysia – Policies:
The basis of the Bank Negara Malaysia’s monetary policies is to keep the inflation rates stable and low so that a sustainable economic growth rate can be achieved. With its financial policies it has to make sure that the whole system is safe and consistent and acts as a major factor for Malaysia’s economic growth and transformation. The policies for administering foreign exchange of the Bank Negara Malaysia have been liberal over the years.
Central Bank of Malaysia – Branch Offices:
BNM has its branches in the following locations:

  • Pulau Pinang
  • Johor Bahru
  • Kota Kinabalu
  • Kuala Terengganu
  • Kuching

In addition to these the Bank Negara Malaysia also has a Currency Processing and Distribution Centre at Shah Alam. It has a Museum and Art Gallery at Jalan Dato’ Onn. Its overseas offices are located at London and New York.
Central Bank of Malaysia – Contact Details:
The contact details of the BNM can be mentioned as below:
Bank Negara Malaysia
Jalan Dato’ Onn
P.O. Box 10922
50929 Kuala Lumpur
Phone: 603-2698-8044
Fax: 603-2691-2990
Telex: MA 34137 / MA 34138

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Last Updated on : 30th July 2013

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