Featured Product

    BNM Consults on Requirements for Repurchase Agreement Transactions

    August 20, 2019

    BNM published an exposure draft setting out the revised expectations from the licensed banks and licensed investment banks that enter into repurchase agreement (repo) transactions. This policy document is applicable to repo transactions involving Ringgit and non-Ringgit Repo securities and reverse repo transactions including any outright sale or purchase of repo securities with an intention to repurchase or resell these repo securities at a future date. The response period for the consultation ends on September 13, 2019.

    The policy document on repo transactions seeks to set out the scope of repo transactions that can be conducted by licensed banks and licensed investment banks, to set out regulatory requirements and expectations in relation to repo transactions entered into by licensed banks and licensed investment banks, and to promote sound risk management practices by licensed banks and licensed investment banks for the conduct of repo transactions. Revisions to the policy document comprise primarily of the following:

    • Extension of the maximum tenor of a repo to 5 years from 365 days
    • Expansion of eligible securities to accord flexibility to market participants in their conduct of repo transactions
    • Removal of subjection to Malaysian Annex

    This document will supersede the policy document on repurchase agreement transactions (BNM/RH/PD 032-3), which was issued on July 31, 2015. The revised policy document shall come into effect on date of publication of the final policy. This policy document must be read together with other policy documents and guidelines of BNM, particularly the capital adequacy framework (Basel II – Risk Weighted Assets) issued on May 03, 2019; the single counterparty exposure limit requirements issued on July 09, 2014; the Foreign Exchange Administration rules; the Code of Conduct for Malaysia Wholesale Financial Markets issued on April 13, 2017; the net stable funding ratio requirements issued on July 31, 2019; and the STATsmart reporting requirements.

     

    Related Links

    Comment Due Date: September 13, 2019

    Keywords: Asia Pacific, Malaysia, Banking, REPO, Repurchase Agreement, BNM

    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629