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One of the main objectives of central banks is to promote and maintain monetary and financial stability as it contributes to a healthy economy and sustainable growth. Bank Negara Malaysia discharges the responsibility for promoting a sound and efficient Malaysian financial system by preserving the soundness of financial institutions and the robustness of the financial infrastructure to withstand adverse economic cycles and shocks, thereby preventing inordinate disruptions to the intermediation process and maintaining confidence in the financial system. This is primarily achieved through the regulation and supervision of the licensed financial institutions, by ensuring the continued reliability of major payment and settlement systems, and actively contributing to the development of efficient financial markets.
The Bank also remains vigilant to new emerging trends and challenges to the Malaysian financial system which could undermine financial stability by devoting significant resources towards instituting robust surveillance processes which aim to identify vulnerabilities and support pre-emptive actions to prevent systemic disturbances.