Featured Product

    BNM Shariah Advisory Council Issues Ruling on MYOR-i Reference Rate

    February 11, 2022

    The central bank of Malaysia (BNM) issued an update on the calculation methodology for Malaysia Islamic Overnight Rate (MYOR-i).

    The Shariah Advisory Council (SAC) of BNM finalized a ruling that the new Islamic reference rate MYOR-i and its calculation methodology for both normal and contingency situations are Shariah-compliant, as it includes only Shariah-compliant transactions. Under contingency situation, BNM will calculate and publish MYOR-i based on the average MYOR-i, adjusted for any changes in the Funding Facility Profit Rate (FFPR), over the preceding three publication days. SAC has agreed to the exclusion of qard-based overnight interbank money market transaction and its hibah rates from the MYOR-i calculation methodology under normal situation. SAC also agreed to allow temporary referencing to conventional term reference rate such as Kuala Lumpur Interbank Offered Rate (KLIBOR) or other conventional term reference rates on hajah basis, until a reliable Islamic term reference rate is available. The ruling is effective in accordance with the guidelines, which will be issued by BNM at a later date and is applicable to licensed Islamic financial institutions under the Islamic Financial Services Act 2013 (IFSA), licensed banks, and licensed investment banks approved under section 15(1) of the Financial Services Act 2013 as well as to the prescribed institutions approved under section 33B(1) of the Development Financial Institutions Act 2002.

     

    Related Links

     

    Keywords: Asia Pacific, Malaysia, Banking, Insurance, Securities, Islamic Banking, Lending, MYOR-i, KLIBOR, Interest Rate Benchmark, Interest Rate Risk, Alternative Reference Rates, Islamic Finance, Shariah Advisory Council, BNM

    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699