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Exposure Draft on Domestic Systemically Important Banks Framework

Release Date: 03 Apr 2019

Bank Negara Malaysia today issued an Exposure Draft which sets out the Bank’s proposals on the Domestic Systemically Important Banks policy framework. The policy framework, which forms part of the Basel III regulatory reforms, aims to strengthen existing policy tools to address risks posed by domestic systemically important banks (D-SIBs). D-SIBs broadly refer to financial institutions whose distress or disorderly failure have the potential to cause significant disruption and result in spillovers to the domestic financial system and the wider economy.

The Exposure Draft outlines the following:

i.   the assessment methodology to identify D-SIBs in Malaysia;
ii.  higher loss absorbency requirements applicable to D-SIBs; and
iii. reporting requirements applicable to financial institutions in regard to the framework.

The Bank invites written feedback on the proposed policy framework. In addition, financial institutions which are apex entities (as defined in the Exposure Draft) are required to prepare and submit information based on the reporting template provided for the period ending 31 December 2018. Responses including the completed reporting template must be submitted to the Bank to by 15 May 2019.

See more: 

Domestic Systemically Important Banks Framework Exposure Draft

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