Featured Product

    BNM Consults on Policy Framework for D-SIBs

    April 03, 2019

    BNM is consulting on the policy framework for the domestic systemically important banks (D-SIBs). In addition, financial institutions are required to prepare and submit information based on the reporting template provided for the period ending December 31, 2018. Responses to the consultation, including the completed reporting template, must be submitted by May 15, 2019.

    The policy framework for D-SIBs is applicable to licensed banks, licensed investment banks, licensed Islamic banks, and financial holding companies. The exposure draft (consultation paper) outlines the assessment methodology to identify D-SIBs in Malaysia, the higher loss absorbency (HLA) requirements applicable to D-SIBs, and the reporting requirements applicable to financial institutions in regard to the framework. BNM, at its discretion, may impose additional requirements and policy measures as deemed appropriate by BNM to manage risks posed by D-SIBs. 

    The policy framework forms part of the Basel III regulatory reforms and aims to strengthen existing policy tools to address risks posed by D-SIBs. The framework aims to address the regulatory requirements and policy measures that may be applicable to D-SIBs, the intensity of supervisory oversight by BNM, and the macro-prudential surveillance of BNM. The policy document supersedes the Domestic Systemically Important Banks Framework Survey, which was issued on October 10, 2016.  This document must be read together with other relevant legal instruments and policy documents issued by BNM, particularly the following:

    • Capital Adequacy Framework (Capital Components) and Capital Adequacy Framework for Islamic Banks (Capital Components)
    • Capital Adequacy Framework (Basel II – Risk-Weighted Assets) and Capital Adequacy Framework for Islamic Banks (Risk-Weighted Assets)
    • STATsmart Reporting Requirements on Data Submission for Reporting Entities
    • Liquidity Coverage Ratio
    • External Assets and Liabilities Information System (EALIS)—Submission of External Assets and Liabilities Report
    • Definition of Small and Medium Enterprises


    Related Links

    Comment Due Date: May 15, 2019

    Keywords: Asia Pacific, Malaysia, Banking, Basel III, D-SIBs, Reporting, HLA, Islamic Banking, Systemic Risk, BNM

    Featured Experts
    Related Articles

    PRA Publishes Q&A on Property Valuation Requirements Under CRR

    PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.

    May 29, 2020 WebPage Regulatory News

    EBA Publishes Guidelines on Loan Origination and Monitoring

    EBA published guidelines on loan origination and monitoring, which bring together prudential standards and consumer protection obligations, along with the anti-money laundering and the Environmental, Social, and Governance (ESG) considerations.

    May 29, 2020 WebPage Regulatory News

    EBA Proposes Revised Standards for Own Funds and Eligible Liabilities

    EBA published a consultation paper on the draft amended regulatory technical standards on own funds and eligible liabilities.

    May 29, 2020 WebPage Regulatory News

    EBA Sets Out Supervisory Convergence Plan for 2020

    EBA published a report on convergence of supervisory practices in 2019.

    May 29, 2020 WebPage Regulatory News

    IOSCO Consults on Outsourcing Principles for Operational Resilience

    IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.

    May 28, 2020 WebPage Regulatory News

    MAS Consortium to Develop AI Fairness Metrics for Credit Scoring

    MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.

    May 28, 2020 WebPage Regulatory News

    BoE Updates Definitions for BTL Data Collection

    BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.

    May 28, 2020 WebPage Regulatory News

    FSI Examines Financial Stability Implications of Payment Deferrals

    FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.

    May 28, 2020 WebPage Regulatory News

    RBNZ Publishes Financial Stability Report for May 2020

    RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.

    May 27, 2020 WebPage Regulatory News

    PRA Finalizes Policy on Prudent Person Principle Under Solvency II

    PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.

    May 27, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5234