INTERNAL REVAMP AT MALAYSIAN CENTRAL BANK

Bank Negara Malaysia, the Malaysian Central Bank that acts as a regulator to the entire financial services sector, is to undergo an internal revamp under which the current sectoral approach to regulation will be abandoned in favour of an integrated scheme. Details would be communicated to the interested parties in November and December, the bank said. Existing regulatory departments will be reorganised along the lines of financial sector development, prudential policy, consumer protection and market conduct, and financial surveillance, across both the banking and insurance sectors. Governor Zeti Akhtar Aziz said in her keynote address at the 2006 Dialogue Session with Insurers and Takaful Operators than “we believe this organisational change will deliver a more comprehensive overview and cohesive approach to the development of the financial system, while facilitating a clear distinction between the objectives of prudential regulation and financial stability”.