Banking & IFS
From The Report: Malaysia 2016
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Although funding conditions in Malaysia are tightening due to prudential considerations and heightened macroeconomic risks, the banking system as a whole remains profitable, liquid and well capitalised. The country’s 27 domestic and foreign banking institutions are amongst the most dynamic in the region, serving clients at home as well as the wider South-east Asia region. An early adopter of sharia-compliant financial systems, Malaysia is now reaping the benefits as it continues to consolidate its global lead in Islamic finance. In the 23 years since commercial banks were allowed to offer Islamic banking products, the sector has emerged as a formidable force in providing funding to the Malaysian economy and beyond, creating additional high value at home and abroad. This chapter contains interviews with Nor Shamsiah Mohd Yunus, Deputy Governor, Bank Negara Malaysia; Mahendra Gursahani, Managing Director and CEO, Standard Chartered Malaysia; and Jaseem Ahmed, Secretary-General, Islamic Financial Services Board.

Articles from this Chapter

Overview

Moving forward: The sector’s strong fundamentals will help it weather any challenges ahead
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Although funding conditions in Malaysia are tightening due to heightened macroeconomic risks, both domestically and abroad, the banking system as a whole remains profitable, liquid and well capitalised. The country’s 27 domestic and foreign banking institutions are amongst the most dynamic in the region, serving clients at home, as well as the wider South-east Asia region. As the IMF stated in a 2014 report, “strong regulatory oversight, coupled with efforts to restructure the banking sector…

Interview

Balanced integration: OBG talks to Nor Shamsiah Mohd Yunus, Deputy Governor, Bank Negara Malaysia
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Interview:Nor Shamsiah Mohd Yunus How will Malaysia’s extension of Basel III capital adequacy requirements to financial holding companies (FHCs) affect banking groups? NOR SHAMSIAH MOHD YUNUS: It has already prompted banking groups to begin considering their optimal future structure. For example, RHB Capital has announced that it will undergo a restructuring, deciding to merge RHB Capital and RHB Bank, with the latter to become the apex of the group and the company that will eventually…

Interview

Standing out: OBG talks to Mahendra Gursahani, Managing Director and CEO, Standard Chartered Malaysia
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Interview:Mahendra Gursahani To what extent is tighter liquidity a concern? MAHENDRA GURSAHANI: There is a worry that things are slowing down, and the loosening of statutory reserve requirements (SRR) by Bank Negara Malaysia (BNM) is one measure that has been taken to try and encourage lending and loan growth. But even before BNM eased SRR, I do not think we were going through a liquidity crisis. What the measure did do was release a large chunk of money – RM1.6bn ($396.1m) – back into…

Overview

Big gains: The country’s head start has led to a globally respected sector
OBG
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An early adopter of sharia-compliant financial systems, Malaysia is now reaping the benefits as it continues to consolidate its global lead in Islamic finance. Following 23 years since commercial banks were allowed to offer Islamic banking products, the sector has emerged as a formidable force in providing funding to the Malaysian economy and beyond, creating additional high value at home and abroad. By the end of 2015 the sector had more than surpassed the government’s original target of increasing…

Interview

Widening appeal: OBG talks to Jaseem Ahmed, Secretary-General, Islamic Financial Services Board (IFSB)
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Interview:Jaseem Ahmed In what ways has the development of Malaysia’s banking and IFS sector moved above and beyond that of its global peers? JASEEM AHMED: Islamic finance has been progressively integrated into Malaysia’s long-term economic development strategy over the last 30 years. In 1983 the first Islamic banking law was established, authorising Bank Negara to issue licences for Islamic banks, but the government did not stop there. It recognised that Islamic banks needed government…