Beruflich Dokumente
Kultur Dokumente
Malaysian Financial
System
TOPIC 1
Introduction
http://www.investopedia.com/terms/f/financial-system.asp
Definition of Financial System
http://www.investopedia.com/terms/f/financial-system.asp
M
o
n
Financial System
e
y
&
Financial
Institutions F Financial Market
o
r
e D
i e
Non- g r
Banking Bank Capital i
n
System Financia Market v
l 1. Equity
1. Bank Negara Interme E a
diaries x Market t
Malaysia
1. Provident and c 2. Bond Market i
2. Banking v
Pension Funds h
Institutions e
2. Insurance Companies a Public
Commercial Banks (including Takaful) n Debt s
Finance 3. Development Finance g Securities
Companies Institutions e M
Private a
4. Savings Institutions
Merchant Banks Debt r
National Savings Bank M
Islamic Banks a Securities k
Co-operative Societies
3. Others 5. Others r e
k t
Unit Trusts
Pilgrims Fund Board
e
Discount Houses t 1. Commodity Futures
Housing Credit
Representative Institutions 2. KLSE CI Futures
Offices of Foreign Cagamas Berhad 1. Money 3. KLIBOR Futures
Bank s Credit Guarantee
Corporation
Market
2. Foreign
Leasing Companies Exchange
Factoring Companies Market 1. Labuan
Venture Capital
Companies International
Offshore
Financial Center
What Purpose does Financial System
serve?
History
Central to evolution of the financial system is trade.
Started with barter trade system; inability to strike right exchangeability
between two sets of goods
Surplus good could not be stored
Good medium of exchange was needed
Money (notes and coins) good medium of exchange
Detail history of Banks in Malaysia can be read from the following link;
http://ecmalaysian.blogspot.my/2013/03/a-brief-history-of-banks-in-
straits.html
Money
Branch banks
The Chartered Mercantile Bank of India, London and China in
Penang 1859.
Chartered Bank in 1875
Singapore-incorporated banks 1917 in Malacca and Muar
Domestic banks
Kwong Yik Banking Corporation 1913
Currency Board and Bank Negara Malaysia
The Central Bank of Malaysia Ordinance 1958 (CBO) provides for the
Central Bank to be the sole currency issuing authority in the country.
The Central Bank commenced to issue its own currency on June 12,
1967, thereby replacing the Currency Board as the sole currency issuing
authority in Malaysia.
Institution Building Program by Bank Negara Malaysia
Law, Institutions and Malaysian Economic Development
edited by Jomo Kwame Sundaram, Sau Ngan Wong
Banking Act 1973
Law, Institutions and Malaysian Economic Development
edited by Jomo Kwame Sundaram, Sau Ngan Wong
Regulatory process
Bank Negara (the National Bank of Malaysia) had given August 31, 2000 as the deadline for the many Malaysian
banks to consolidate and merge into 10 groups of their choice. The 10 anchor banking groupsthat managed to
ink their sale and purchase agreements by that deadline are:
1. Maybank group
Malayan Banking, Mayban Finance, Aseambankers, PhileoAllied Bank, Pacific Bank, Sime Finance, Kewangan
Bersatu.
Bumiputra Commerce Bank, Bumiputra Commerce Finance, Commerce International Merchant Bankers.
3. RHB Bank
RHB Bank, RHB Sakura Merchant Bank, Sime Bank, Delta Finance, Interfinance.
4. AMMB
Arab-Malaysian Bank, Arab-Malaysian Finance, Arab-Malaysian Merchant Bank, Bank Utama Malaysia, Utama
Merchant Bankers.
Hong Leong Bank, Hong Leong Finance, Wah Tat Bank, Credit Corp Malaysia.
Consolidation of the Banking Sector
From the previous slides the development of Financial System Malaysia can be summarized as
follows;
The establishment of banks; Foreign branches starting from 1859, establishment of domestic bank in 1913.
The establishment of the Currency Board in 1907
Establishment f BNM in 1959
Finance Companies Act 1969
The Banking Act 1973
The Banking and Financial Institutions Act 1989
Consolidation of the Banking Sector 1999-2002
Financial Sector Master Plan 2004
Central Bank of Malaysia Act 2009
Financial Sector Blue print 2011-2020 10-year Blueprint of the financial system
Thank you