Bank Negara : Organisational Structure and Mandate

7 April 2015 | Ruziana Mohd Mokhtar| Central Banking Services Bank Negara Malaysia: Key facts & governance

• Established under the of Malaysia Act 1958

• Staff strength: 2,829 (end-2014)

• Board of directors: – 12 members: Governor (chair), 3 DGs, Secretary-General of Treasury, 7 independent non-executive – Supported by 3 Board Committees (audit, governance, risk)

2 Bank Negara Malaysia: Key facts & governance

Appointment by Tenure • Directors Yang di-Pertuan Agong 3 years • Governor Yang di-Pertuan Agong 5 years • Deputy Governor Minister 3 years

• Termination only by the appointer, subject to criteria in CBA

• Disqualification criteria: – Being a member of the Senate, House of Representative or any Legislative Assembly – A public officer (except for the Secretary-General of Treasury) – A director or officer of any entity under the Bank’s supervision – Convicted of criminal offence involving dishonesty or sentenced to imprisonment for criminal offence – Bankrupt or suspends payment or compounds with his creditors – Involved in activity which may interfere with his independence in discharging duties – Not a Malaysian citizen

3 4 Act 2009 sets out a clearly defined mandate

• Principal object: To promote monetary stability and financial stability, aimed at providing a conducive for a sustainable growth of the Malaysian economy

• Primary functions: – Formulate and conduct – Issue currency – Regulate and supervise financial institutions – Provide oversight over payment systems – Promote a sound, progressive and inclusive financial system – Hold and manage the foreign reserves of Malaysia – Promote an exchange rate regime consistent with the fundamentals of the economy – Act as financial adviser, banker and financial agent of the Malaysian government

• In giving effect to its objects and carrying out its functions, shall have regard to the national interest

5 The Bank’s focus areas are aligned with its mandate

Monetary Financial Stability System Stability

High Performing & Greater Sustainable Financial Organisation Focus Inclusion & Areas Intermediation Strengthened Regional & Progressive International Payments Linkages Ecosystem Talent Development for Financial Industry

6 Comprehensive legal framework to perform mandate

Central Bank of Malaysia Act 2009 Money Financial Services Services Act Business Act 2013 2011 Acts governed by Anti-Money the Bank Laundering Islamic and Anti- Financial Terrorism Services Act Financing Act 2013 2001 Development Financial Institutions Act 2002

7 Technical cooperation through sharing of experience

• The Bank has a long history in building and nurturing international and regional cooperation – Since 2008, housed within Central Banking Services

• Draw upon expertise from within the Bank as well as other organisations in Malaysia and around the world

• Structured programmes, study visits, exchange of information

8 Sasana Kijang: Centre of excellence in knowledge and learning in Central Banking and Financial Services

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