Professional Documents
Culture Documents
IN MALAYSIA
THE STRUCTURE OF MALAYSIAN
FINANCIAL SYSTEM
The Malaysian
Financial system
Financial Financial
Institutions Markets
Intermediaries
Cont’
Malaysian financial system can be categorize into 3 broad sectors:
1. Banking Financial Intermediaries
The monetary institutions
Comprising BNM and the commercial banks (now including bank companies).
The banking system is the largest components of the financial system, accounting for about 67%
of the total assets of the financial system.
2. Non-Banking Financial Intermediaries
Carry out financing activities but their resources are not directly obtained from the savers as
debt. Instead, these institutions mobilize the public savings for rendering other financial
services. All such institutions are financial intermediaries and when they lend, they are
known as (NBI’s)
Eg. Factoring companies, Insurance Companies, Cagamas Berhad
3. Financial Market
A market for the exchange of capital credit, including the money markets and the capital
market.
Eg. Labuan International Offshore Financial Centre, Stock Exchange, Commodity Future
Exchange.
THE MALAYSIAN BANKING
SYSTEM
The Malaysian Banking System consists of:
• Investment Banks No. 1 Affin Investment Bank Berhad 2 Alliance Investment Bank Berhad 3
AmInvestment Bank BerhadL 4 CIMB Investment Bank Berhad 5
ECM Libra Investment Bank Berhad 6 Hong Leong Investment Bank Berhad 7
HwangDBS Investment Bank Berhad 8 KAF Investment Bank Berhad 9
Kenanga Investment Bank Berhad 10 Maybank Investment Bank Berhad 11
MIDF Amanah Investment Bank Berhad12 MIMB Investment Bank Berhad 13
OSK Investment Bank Berhad 14 Public Investment Bank Berhad 15 RHB Investment Bank Berhad
L
Examples:
Islamic Banks
•Affin Islamic Bank Berhad(L)
•Al Rajhi Banking & Investment Corporation (Malaysia) Berhad(F)
•Alliance Islamic Bank Berhad(L)
•Alliance Islamic Bank Berhad(L)
•AmIslamic Bank Berhad(L)
•Asian Finance Bank Berhad(F)
•Bank Islam Malaysia Berhad(L)
•Bank Muamalat Malaysia Berhad(L)
•CIMB Islamic Bank Berhad(L)
•Hong Leong Islamic Bank Berhad(L)
•HSBC Amanah Malaysia Berhad(F)
•Kuwait Finance House (Malaysia) Berhad(F)
•Maybank Islamic Berhad(L)
•OCBC Al-Amin Bank Berhad(F)
•Public Islamic Bank Berhad(L)
•RHB Islamic Bank Berhad(L)
•Standard Chartered Saadiq Berhad(F)
There are two systems involve in the
Malaysian Banking System:
Monetary Institution
• Monetary institution’s principal activities involve directly with the money.
• Principal liabilities are generally accepted as money.
• The monetary institutions are the Bank Negara Malaysia i.e. issuing currency .
• Commercial Banks and Islamic banks are allowed to operate current account.
Non-Monetary Institution
• Non-monetary institution involves with the main activities of granting the
loan, hire purchase and other activities or generally accepted as near money.
• Examples of non-monetary institutions are investment banks and credit
guarantee corporation.
THE NON-BANK FINANCIAL
INTERMEDIARIES (NBFIs)
• The Non-Bank Financial Intermediaries comprise five groups of
Institutions:
FINANCIAL
MARKETS
• The introduction of agent banking by the Bank in 2012 will further contribute
to the financial inclusion agenda by enhancing accessibility to quality and
affordable financial services, particularly in the underserved and remote areas.