PETALING JAYA: Bank Negara Malaysia (BNM) today issued an updated exposure draft on the licensing framework for digital banks, which incorporates the proposed simplified regulatory framework for digital banks.
In a statement today, the central bank said the simplifications aim to reduce regulatory burden for new entrants that have strong value propositions for the development of the Malaysian economy, whilst safeguarding the integrity and stability of the financial system.
“Digital banks will be required to comply with all equivalent regulatory requirements applicable to incumbent banks after the foundational phase,” it said.
Some of the key features of the simplified regulatory framework includes simpler risk categorisation of capital adequacy requirements, and a liquidity requirement of at least 25% of the digital bank’s on-balance sheet liabilities being held in high quality liquid assets.
BNM is extending the consultation period for the exposure draft until April 30. Applications for new licence(s) will be open upon issuance of the policy document.