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Financial Stability

Cornerstone of Financial Stability - Supervision and Regulation


Functions of Regulation Departments

  • Financial Sector Development: Progressive development of the financial sector including the promotion of competitive and robust financial institutions (FIs) and financial infrastructure enhancement
  • Financial Surveillance: Comprehensive and integrated macro-prudential surveillance and assessments of emerging trends and vulnerabilities of the financial system
  • Prudential Financial Policy: Development of a sound & robust prudential framework for FIs that promotes harmonisation & alignment across sectors
  • Consumer & Market Conduct: Formulates and enforces market conduct policies to ensure fair treatment of financial consumers as well as undertakes initiatives to increase the financial literacy levels of Malaysian consumers.
  • Islamic Banking and Takaful: Create an enabling environment through improvements in the regulatory regime and develop relevant prudential policies to effectively support an Islamic financial system
  • Development Finance and Enterprise: Promote the roles of development financial institutions in effectively and efficiently delivering its mandated roles of promoting strategic sectors of the economy. Drive, incentivise and influence financial services providers to provide financing to strategic targeted sectors and the underserved stakeholders
  • MIFC Promotion Unit: Develop and implement a comprehensive range of MIFC promotional strategies and initiatives to position Malaysia as an international Islamic financial hub.


Functions of Supervision Departments

  • Financial Conglomerates Supervision: Supervision of domestic financial conglomerates and Islamic banks which are part of the domestic banking groups.
  • Banking Supervision: Supervision of foreign banks, stand-alone investment banks, stand-alone and foreign licensed Islamic banks, and development financial institutions.
  • Insurance and Takaful Supervision: Supervision of insurance companies, reinsurance companies, takaful operators, retakaful operators as well as international takaful operators
  • Payment Systems Policy: Development of policies and strategies to promote the safety, security & efficiency of payment systems & payment instruments, and drive migration to e-payment initiatives.
  • Specialist Risk Unit: Provide prompt independent assessment and advice on emerging risks in specific and across regulated financial institutions to facilitate pre-emptive actions. 


Functions of Regulation and Supervision Administration

  • Provide centralised administration services, knowledge management support and coordinate learning/development initiatives for both regulation and supervision departments.