Bank Negara

Bank Negara Malaysia is the Central bank of Malaysia. It was created the January 26th 1959 by the Ordinance on the Central Bank Malaysian of 1958.

Missions

Its missions are the following:

To emit the Malaysian currency and to take care on its reserves to guarantee the value of the currency
To provide the functions of banker and to advise financial Malaysian government
To promote the monetary stability and the good health of the capitalization of the country
To promote reliability, the effectiveness and the good walk of the systems of payment and national payments and to make sure that the policy of the systems of payment and national payments is favorable to Malaysia, etc…
Influencer a situation creditor with the advantage of the country

Bank Negara Malaysia is governed by the principle which it acts for the best interest of the Malaysian nation, without consideration of profit for itself.

Structure

The central bank is directed by a Board of directors (Board off Directors) which consists of 9 members:

the Governor
the 3 Vice-Governors
the General secretary with the Treasury
the 4 other directors are named according to their statute and their experiment in the financial world.

The Governor (Governor) is with the head of the institution. In accordance with paragraph 9 (1) of the Ordinance on the Central Bank Malaysian of 1958, it is named by Its Majesty Yang Di Pertuan Agong (the Sovereign of Malaysia). Since the creation of Bank Negara Malaysia, seven governors followed one another. Since May 2000, the Governor is (Madam) Tan Sri Dato' Sri Dr. Zeti Akhtar Aziz. The General secretary with the Treasury as well as the 4 other directors are them also named by His Majesty Yang Di Pertuan Agong. The 3 Vice-Governors (Deputy Governors) as for them are named by the Minister for Finance for one 3 years renewable period. The Governor governs the Board of directors, providing the function of Chairman. In the event of absence, it can be replaced by one of the Vice-Governors. The Board of directors to the obligation to meet at least once a month.

Bank Negara Malaysia is made up of 7 divisions, each one being directed by an Assistant Governor and 32 departments.

The main offices of Bank Negara Malaysia are located at Kuala Lumpur, the economic capital of Malaysia. The Institution comprises 6 other offices in Malaysia, in the States de Johor, Penang, Sabah, Sarawak, Selangor (production center and distribution of the local currency) and Terengganu.

There exists moreover 2 representative offices abroad, in London (England) and New York (the United States).

Financial legislation

In order to achieve the goals which are laid down to him, in term of regulation and supervision of the Malaysian financial system, Bank Negara Malaysia enjoys a legal capacity, which several legal texts confer to him.

Central Bank off Malaysia Act 1958 (Revised 1994)

Law on creation, the administration, the capacities and duties of a Malaysian Central bank

Banking and Financial Institutions Act 1989 (BAFIA)

Law framing the activities of the actors of the financial sector, in particular the banks and the organizations of appropriations.

Exchange Control Act 1953

Law conferring the capacities and the duties in relation to gold, the currency, the payments, the safety measures, the debts, the import, export, the transfer and the establishment of the property as all that is attached there.

Islamic Banking Act 1983

Law framing the sector of the Islamic banks

Insurance Act 1996

Law framing the sector of the insurances and the financial council

Takaful Act 1984

Law framing the sector Takaful

Development Financial Institutions Act 2002 (Act 618)

Law framing the activities of the financial institutions of development to allow their development, their effectiveness and respect of the policies and financial orientations of the government.

Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (Act 613)

Law on the fight against the money laundering and the financing of terrorism

Payment Systems Act 2003 (Act 627)

Law on the regulation and the supervision of the systems and instruments of payment

Money-Changing Act 1998 (Act 577)

Law framing the sector of exchange of currencies

End of the fixed mode of exchange

The January 26th 2005, Malaysia puts an end to the fixed mode of rate of the Malaysian currency: the Ringgit Malais whose international symbol is MYR and the usual symbol is RM. Before this date, Ringgit was aligns with the American dollar US$.

See too

External bonds

Official site of Bank Negara Malaysia

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