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Islamic Banks Are No Longer Required To Maintain Reserve Fund - BNM
Last update: 03/05/2017

KUALA LUMPUR, May 3 (Bernama) -- Bank Negara†Malaysia (BNM) announced†that†Islamic banks are no longer required to maintain a reserve fund effective May 3, 2017.

The Islamic banks were expected to exercise prudence before submitting an application to distribute the reserves as dividends, the central bank announced on its website.

"BNM†wishes to inform that in considering the dividend application, the bank shall consider, among others, the Islamic bank's ability to comply with the fully phased-in capital conservation buffer requirement and any other buffers that the bank may specify," it said.

The policy was introduced†to ensure a banking institution maintains a minimum size of capital to operate and perform its intermediation function effectively.

However,††the†requirement was†no longer relevant given the implementation of the capital conservation buffer under the capital adequacy framework, BNM explained.

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CLOSING, THURSDAY, APRIL 19
US 3.8890/8920
S'pore 2.9694/9728
100 Yen 3.6214/6252
Sterling 5.5204/5263
Euro 4.8103/8144
Source: Bank Negara Malaysia

Starting April the banks have imposed a 50 sen processing fee on top of the 15 sen stamp duty on each cheque. The fee also applies to those applying for a Bankerís Cheque, Bank Draft and Cashierís Order. Do you think this additional charge is justified?
 

 
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