By BERNAMA
Bank Negara Malaysia (BNM) has undertaken surveillance on significant non-bank financial institutions that have important interlinkages with the financial system as part of its mandate to promote financial stability.
This is supported by the establishment of the Financial Stability Executive Committee (FSEC) under the Central Bank of Malaysia Act 2009 which is chaired by the governor Zeti Akhtar Aziz and whose members include the Treasury secretary-general and the Malaysia Securities Commission chairman, it said in a statement today.
“Based on the central bank’s surveillance, BNM and the FSEC may, from time to time, issue advice to significant non-bank institutions as a pre-emptive measure to promote the sound financial standing of such institutions and avoid any systemic implications on the financial system,” it said.
BNM said in relation to Lembaga Tabung Haji, the institution has proactively taken appropriate measures to further strengthen its risk management practices, both on its own initiative and in response to earlier engagements with BNM. These will reinforce a sustainable and healthy financial position of the institution going forward, it said.
“While Lembaga Tabung Haji is not under the direct supervision of the BNM, advisories issued by it to non-bank financial institutions are aimed at ensuring the institutions will continue to be well managed and effectively perform the role for which they have been established.
“This in turn will contribute to financial stability,” it added.
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