Banks in Malaysia
The financial institutions in Malaysia is divided into two, the banking system and the non-banking financial intermediaries which includes employees provident and pension funds (EPF), insurance companies, savings institutions (Tabung Haji etc), unit trusts, credit institutions and so on. For the banking system, it includes the Central bank, commercial banks, investment banks and Islamic banks.
The non-banking financial institutions are further classified into Development financial institutions (DFI) and others. Certain institutions are covered under the Development Financial Institutions Act 2002 while others are not. Those covered include several government institutions called banks but not included under the usual banking system due to not having a full banking licence or is not supervised by a national or international banking regulatory agency but under a different Act. Those covered under DFIA 2002 includes:
1) Bank Pembangunan Malaysia Berhad
2) SME Bank
3) EXIM Bank
4) Bank Rakyat
5) BSN
6) Agrobank
Reference from Bank Negara
These DFIs provide a range of specialized products to assist the people to cater to the specific needs of targeted sectors and acts to complement the banking institutions, such as assisting the small and medium enterprises, agriculture and public transportation. DFIs are important in developing the country. Those not covered include but not limited to the following:
1) Lembaga tabung haji
2) Sabah Development Bank Berhad
3) Sabah Credit Corporation
The Malaysian banking system operates a dual system of conventional and Islamic. Both of these systems acts and functions as the normal banking functions that provides services as financial adviser, as a financial intermediary, a place that offers loan and financing, a place to store money and all authorized and under the purview of the government.
Roles of a commercial bank
Not limited to a place to store and invest money for depositors, a commercial bank provides services platform of secure payment system, acts as a guarantor, assist customers to prepare financially for risks of loss, and as a channel for implementing government policy of economic and social growth.
The non-banking financial institutions are further classified into Development financial institutions (DFI) and others. Certain institutions are covered under the Development Financial Institutions Act 2002 while others are not. Those covered include several government institutions called banks but not included under the usual banking system due to not having a full banking licence or is not supervised by a national or international banking regulatory agency but under a different Act. Those covered under DFIA 2002 includes:
1) Bank Pembangunan Malaysia Berhad
2) SME Bank
3) EXIM Bank
4) Bank Rakyat
5) BSN
6) Agrobank
Reference from Bank Negara
These DFIs provide a range of specialized products to assist the people to cater to the specific needs of targeted sectors and acts to complement the banking institutions, such as assisting the small and medium enterprises, agriculture and public transportation. DFIs are important in developing the country. Those not covered include but not limited to the following:
1) Lembaga tabung haji
2) Sabah Development Bank Berhad
3) Sabah Credit Corporation
The Malaysian banking system operates a dual system of conventional and Islamic. Both of these systems acts and functions as the normal banking functions that provides services as financial adviser, as a financial intermediary, a place that offers loan and financing, a place to store money and all authorized and under the purview of the government.
Roles of a commercial bank
Not limited to a place to store and invest money for depositors, a commercial bank provides services platform of secure payment system, acts as a guarantor, assist customers to prepare financially for risks of loss, and as a channel for implementing government policy of economic and social growth.
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