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 9 .