By Khairul Khalid
Bank Negara Malaysia (BNM) said that it had issued advice to non-bank institutions such as Lembaga Tabung Haji to avoid “systemic implications on the financial system”.
“Based on the BNM’s surveillance, BNM and the Financial Stability Executive Committee (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 implication on the financial system,” said BNM in an official statement.
BNM explained further that part of its mandate “to promote financial stability, BNM undertakes surveillance on significant non-bank financial institutions that have important interlinkages with the financial system”.
BNM said that while Lembaga Tabung Haji is not under the direct supervision of the bank, advisories issued by the BNM 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,” said BNM.
According to BNM, this surveillance is supported by the establishment of the FSEC under the Central Bank of Malaysia Act 2009 which is chaired by the governor and whose members include the secretary-general of the Treasury, the chairman of the Malaysia Securities Commission, the chief executive officer of the Malaysia Deposit Insurance Corp and an independent external member.
It was reported today that PAS deputy president Tuan Ibrahim Tuan Man had questioned Tabung Haji’s purported delay in declaring its dividends to its depositors, alleging that BNM had sent a letter to Minister in the Prime Minister’s Department Jamil Khir Baharom, informing him that Tabung Haji’s reserves have become negative.
Tabung Haji chairperson Abdul Azeez Abdul Rahim has denied these claims and said that Tabung Haji will hold a press conference on the matter later today.
BNM said that Tabung Haji 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,” said BNM.
You must be logged in to post a comment.