Bank Negara Malaysia has adopted a balanced approach to enable the admission of digital banks with strong value propositions and the ability to preserve the integrity and stability of the financial system, said Deputy Finance Minister II Mohd Shahar Abdullah.
Mohd Shahar was responding to a question from Senator Datuk Teo Eng Tee @ Teo Kok Chee (Gerakan) who wanted to know about BNM's proposal to issue digital bank licences for conventional and Islamic banking business and how they will be regulated by the Ministry of Finance (MoF).
The negotiation period for the Exposure Draft on Licensing Framework for Digital Banks ended on June 30, 2020, he said, adding that BNM received almost 50 responses and is currently reviewing the feedback before finalising the digital bank licensing policy document and opening applications for the licence.
He said digital banks will be required to comply with the requirements under the Financial Services Act 2013 or Islamic Financial Services Act 2013, including relevant requirements such as standards on prudential, business conduct and consumer protection, as well as on anti-money laundering and terrorism financing.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now