World BankInternational Monetary Fund2013-10-022013-10-022013-02https://hdl.handle.net/10986/16023Bank Negara Malaysia (BNM) employs a very well developed risk-focused regulatory and supervisory regime, consisting of a hands-on and comprehensive program of onsite supervision and extensive off-site macro, and micro, surveillance that is well integrated with its on-site supervision. This assessment of the current state of compliance with the Basel Core Principles (BCPs) in Malaysia has been undertaken as part of a joint International Monetary Fund (IMF)-World Bank Report on the Observance of Standards and Codes (ROSC) mission. The assessment was conducted from 4 April till 20 April 2012. It reflects the banking supervision practices of the BNM as of the end of March 2012 for the supervision of commercial banks. The assessment is based on several sources: (i) a detailed and comprehensive self-assessment prepared by the BNM ; (ii) detailed interviews with the BNM staff; (iii) review of laws, regulations, and other documentation on the supervisory framework and on the structure and development of the Malaysia financial sector; and (iv) meetings with individual banks, the banking association and an external auditor.en-USCC BY 3.0 IGOACCEPTABLE COLLATERALACCOUNTABILITYACCOUNTANTACCOUNTINGAFFILIATEAFFILIATESARBITRAGEARBITRATIONASSET MANAGEMENTASSET MANAGEMENT COMPANIESASSET MANAGERSASSET QUALITYASSOCIATED COMPANIESAUDIT COMMITTEEAUDITINGAUDITSAUTONOMYBANK ACQUISITIONSBANK CREDITBANK DEPOSITSBANK NEGARA MALAYSIABANKING ASSETSBANKING CRISISBANKING INDUSTRYBANKING INSTITUTIONBANKING INSTITUTIONSBANKING LAWBANKING MARKETBANKING SECTORBANKING STRUCTUREBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBANKSBOND MARKETBONDSBOOK VALUECAPITAL ADEQUACYCAPITAL BASECAPITAL FUNDSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL REQUIREMENTSCASH FLOWCENTRAL BANKCENTRAL BANKSCHECKSCLEARING CORPORATIONCLEARING HOUSECOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMON LAWCONFLICTS OF INTERESTCONSOLIDATED SUPERVISIONCONSOLIDATIONCORPORATE BORROWERSCORPORATE DEBTCOUNTRY RISKCREDIBILITYCREDIT AGENCIESCREDIT BUREAUCREDIT CARDCREDIT INFORMATIONCREDIT REPORTINGCREDIT RISKCREDITORSDEBTDEBT CRISISDEBT INSTRUMENTSDEBT MANAGEMENTDEBT MANAGEMENT AGENCYDEBT RESTRUCTURINGDEBT SECURITIESDEBTSDEPOSITDEPOSIT INSURANCEDEPOSITORDEPOSITORSDEPOSITSDERIVATIVESDISCLOSURE REQUIREMENTSDOMESTIC BANKINGDOMESTIC BONDDOMESTIC BOND MARKETDOMESTIC MARKETEMERGING MARKETEMERGING MARKET ECONOMIESEMPLOYMENTEQUITY MARKETEQUITY MARKETSEXCHANGE RATEEXPENDITURESEXTERNAL AUDITORSFINANCIAL CRISISFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL RATIOSFINANCIAL REGULATIONFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL STRENGTHFINANCIAL STRESSFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKSFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN INVESTORFOREIGN INVESTORSGOVERNMENT BONDGROSS SETTLEMENT SYSTEMHOLDINGHOLDING COMPANIESHOLDINGSINCOME TAXINFLATIONINFORMATION SYSTEMINSURANCE COMPANIESINSURANCE CORPORATIONINSURANCE POLICIESINSURANCE PRODUCTSINTEREST RATEINTEREST RATE RISKINTEREST RATESINTERNAL AUDITINTERNAL CONTROLSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL BANKINTERNATIONAL STANDARDSINVESTMENT ACTIVITIESINVESTMENT BANKINGINVESTMENT BANKSISLAMIC BANKISLAMIC BANKINGISLAMIC BANKSISLAMIC FINANCEISLAMIC FINANCIAL INSTITUTIONSISLAMIC FINANCIAL PRODUCTSISLAMIC INSURANCEISLAMIC LAWISSUANCEJUDICIAL SYSTEMLAWSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL PROTECTIONLEGAL PROVISIONSLEGAL SYSTEMLEGISLATIONLEGISLATIVE FRAMEWORKLENDERLENDER OF LAST RESORTLENDERSLIQUIDITYLIQUIDITY RISKLOANLOAN DECISIONSLOAN OBLIGATIONSLOCAL BANKSLOCAL LAWSMACROECONOMIC POLICIESMARKET DEVELOPMENTSMARKET DISCIPLINEMARKET LIQUIDITYMARKET PARTICIPANTSMARKET STRUCTUREMERCHANT BANKINGMERCHANT BANKSMINIMUM CAPITAL REQUIREMENTSMONETARY FUNDNEW ENTRANTSNON-PERFORMING LOANSNPLOPERATIONAL INDEPENDENCEOPERATIONAL RISKOUTSTANDING LOANOWNERSHIP STRUCTUREPAYMENT SYSTEMPAYMENT SYSTEMSPENALTIESPOLICY RESPONSESPORTFOLIOPORTFOLIOSPRIVATE DEBTPRIVATE SECTOR CREDITPROPERTY INVESTMENTPRUDENTIAL REGULATIONPRUDENTIAL REGULATIONSPUBLIC DEBTREGULATORY APPROACHESREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY FRAMEWORKREGULATORY PRACTICESREPAYMENTREPAYMENT BEHAVIORRESERVESRISK MANAGEMENTRISK PROFILESAFETY NETSECURITIESSETTLEMENTSETTLEMENT RISKSHAREHOLDERSSTAMP DUTYSUBSIDIARIESSUBSIDIARYSUPERVISION OF BANKSSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPERVISORY FRAMEWORKSYSTEMIC RISKTAXTECHNICAL ASSISTANCETERRORISMTRANSPARENCYTURNOVERWorld Bank10.1596/16023