Malaysia Guidelines on Liquidity Framework

  • Date: May 27, 2013
  • Source:

The Liquidity Framework was introduced in 1998 to enhance liquidity management in banking institutions. It replaced the liquid asset ratio requirement. The Framework sets out to:

  • Create awareness among banking institutions of their funding structure and their ability to handle short to medium-term liquidity problems
  • Adopt a more efficient and on-going liquidity measurement and management for banking institutions
  • Provide the Bank Negara Malaysia (BNM) with a better means of assessing the present and future liquidity position of banking institutions.

The Liquidity Framework is applicable to all commercial banks, finance companies and investment banks/merchant banks.

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