Policy Document on Statutory Reserve RequirementRelease Date: 15 May 2020
Statutory Reserve Requirement
January 1959. This document was last updated on 15 May 2020.
The policy document sets out the requirements for the maintenance of balances by banking institutions in their statutory reserve accounts (SRAs) with Bank Negara Malaysia. Banking institutions are required to maintain balances in their SRAs equivalent to a proportion of their eligible liabilities as prescribed in the policy document.
Highlights of the 15 May 2020 update
Effective 16 May 2020, banking institutions are allowed to use Malaysian Government Securities (MGS) and Malaysian Government Investment Issues (MGII) to fully meet the SRR compliance (refer to Appendix 3). This flexibility is available until 31 May 2021.
Highlights of the 27 March 2020 update
Footnote 3 has been updated to reflect that the daily variation band shall be 2.4% − 3.6% for the period 16th to 19th March 2020, and 1.6% − 2.4% from 20th March 2020 onwards. Appendix 3 has been updated to provide additional clarity on the temporary flexibility accorded to Principal Dealers and Islamic Principal Dealers.
Prudential Financial Policy Department
Further details can be found in the following policy document:
© Bank Negara Malaysia, 2020. All rights reserved.