The Central Bank of Malaysia, officially known as the Bank Negara Malaysia in Malay term was established on January 24, 1959., under the Central Bank of Malaya Ordinance 1958 (CBO), which was enacted on October 23, 1958.
Logo of Bank Negara Malaysia (BNM)
The role of a central bank is entrusted with Bank Negara Malaysia.
The Central Bank of Malaya Ordinance 1958 was superseded and revised in 1994 and known as the Central Bank Act 1958 [Act 519]. The Central Bank of Malaysia Act 1958 was subsequently repealed by the Central Bank of Malaysia Act 2009 [Act 701], which became effective 25 November 25, 2009. The constitution, functions, duties and powers of the Bank Negara Malaysia are set out in the Act.
The official logo of Bank Negara Malaysia features a Kijang derived from the Kelantan gold coin, a sun symbolizes power and a crescent moon represents Islam.
Bank Negara Malaysia (BNM) is a statutory body wholly owned by the Government of Malaysia with the paid-up capital progressively increased. The Bank reports to the Minister of Finance, Malaysia and keeps the Minister informed of matters pertaining to monetary and financial sector policies.
The Governor of Bank Negara Malaysia is also the chief executive officer (CEO) and shall be appointed by the Yang di-Pertuan Agong. The Governor is assisted by two Deputy Governors and eight Assistant Governors. The Deputy Governors shall be appointed by the Minister of Finance.
The mission of Bank Negara Malaysia is to promote monetary and financial system stability and fostering a sound and progressive financial sector, to achieve sustained economic growth for the benefit of the nation.
Bank Negara Malaysia's objectives include issuing currency and keeping reserves safeguarding the value of the currency, acting as a banker and economic and financial adviser to the Government, promoting the reliable, efficient and smooth operation of national payment and settlement systems and to ensure that the national payment and settlement systems policy is directed to the advantage of Malaysia and influencing the credit situation to the advantage of Malaysia.
The insurance industry came under the supervision of Bank Negara Malaysia in 1988.
The Banking and Financial Institutions Act 1989 (BAFIA) [Act 372], the Insurance Act 1996 [Act 553] and the Islamic Banking Act 1983 [Act 276] were enacted to enhance Bank Negara Malaysia's regulatory authority over the financial system.
Bank Negara Malaysia was made the competent authority to implement the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 [Act 613], which came into force on January 15, 2002.
The Banking and Financial Institutions Act 1989 (BAFIA) [Act 372] and the Islamic Banking Act 1983 [Act 276] were repealed in 2013 and replaced with the Financial Services Act 2013 [Act 758] and Islamic Financial Services Act 2013 [Act 759] respectively.
Bank Negara Malaysia is head quartered in Kuala Lumpur with state branch offices in Penang, Johor Bahru, Kota Kinabalu, Kuala Terengganu, Kuching and Shah Alam. It also has three overseas representative offices in Beijing, London and New York.
The official site of Bank Negara Malaysia (BNM) features:
About the Bank (Rates & Statistics; Law, Policy & Guidelines; Publications & Research Paper; Procurement)
Monetary Stability (Key Figures [Policy & Inflation Rates, GDP Growth] at a Glance; OPR Decision and Statement; Data Download)
Financial Stability which describes the condition where the financial intermediation process functions smoothly and there is confidence in the operation of key financial institutions and markets within the economy
Financial Sector Development
Malaysia Payment Systems (1. Systemically Important Payment System (SIPS) or Large Value Payment System (LVPS) [Real Time Electronics Transfer of Funds and Securities (RENTAS)]; 2. Retail Payment System [Systems, Instruments, Channels]; E-Payment Services and Fees; Payment Statistics)
Foreign Exchange Administration (FEA) [Rules Applicable to Non-Residents & Residents]