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KUALA LUMPUR: Bank Negara Malaysia (BNM) has taken a balanced approach to enable the admission of digital banks with strong value propositions and the ability to preserve the integrity and stability of the financial system, said II Deputy Finance Minister Mohd Shahar Abdullah.
“Through this approach, BNM sets the threshold of cumulative assets that digital banks can generate of no more than RM2 billion in the first three to five years of operations.
“The founding phase aims for digital banks to demonstrate their viability and sound operations, while BNM monitors their performance and any associated risks,” he told Dewan Negara on Thursday.
Mohd Shahar was responding to a question from Senator Datuk Teo Eng Tee @ Teo Kok Chee (Gerakan) who wanted to know BNM’s proposal to issue digital banking licenses for conventional and Islamic banking businesses and how they will be regulated by the Ministry of Finance (MoF) .
The negotiation period for the Exposure Draft on the Licensing Framework for Digital Banks ended on June 30, 2020, he said, adding that BNM received almost 50 responses and is currently reviewing comments before finalizing the licensing policy document. digital banking and open applications for the license. .
He said that digital banks will be required to comply with the requirements of the Financial Services Act of 2013 or the Islamic Financial Services Act of 2013, including relevant requirements such as rules on prudence, business conduct and consumer protection, as well as against money laundering and terrorism. financing.
“During the founding phase, licensed digital banks will be subject to a more streamlined regulatory requirement related to capital adequacy, liquidity, stress testing and public disclosure.
“This is in line with the objective of stimulating growth and innovation in digital banking, especially to increase financial access to segments that lack or do not have financial services,” he said. – Bernama
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