Bank Negara Malaysia: Organisational Structure and Mandate
7 April 2015 | Ruziana Mohd Mokhtar| Central Banking Services Bank Negara Malaysia: Key facts & governance
• Established under the Central Bank 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 Central Bank of Malaysia 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 monetary policy – 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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