Principal Function of Bank Negara Malaysia (BNM)

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Principal Function of Bank Negara Malaysia (BNM) by Mind Map: Principal Function of Bank Negara Malaysia (BNM)

1. (i) Transaction done by BNM to manage the liquidity position in the financial system

2. To facilitates improvements in payment services and market developments

3. 5. To hold and manage the foreign reserve of Malaysia

3.1. Foreign reserve held consist of gold, foreign currency, financial securities reserve with IMF, special drawing right and financial securities.

3.1.1. To carry out BNM's function and maintaining public confidence.

3.1.2. BNM has to maintain certain percentage of foreign reserve secure value of RINGGIT.

4. 2. Ensure financial resources are allocated efficiently towards promoting economy grows and development

5. 3. (i) Management government account (ii) Provide temporary financing to government (iii) Manage national debt

6. 4. To promote and conduct monetary policy in Malaysia

6.1. (ii) To maintain price stability in tendem with the development in the economy

6.2. (iii) Carry out using several tools which are comprises of quantitative and qualitative or policy operation

7. 7. To provide oversight over money and foreign exchange markets

7.1. To REGULATE, DEVELOP and MAINTAIN the integrity of the above markets

8. 8. To promote and exchange rate regime consistent with the fundamentals the economy

8.1. It must be consistent with the fundamentals of the economy and current policy of the government

8.2. It shall be determine by the Ministry of Finance on the recommendation of the BNM

9. 9. To exercise oversight over payment system

9.1. To ensure the safety, reliability and efficiency of payment system infrastructure

9.2. To reduce the overall risks in payment systems

9.3. To conduct oversight on both large value and retail payment systems

10. 1. Only currency and notes coins issues by BNM shall be legal to use in Malaysia

11. 6. To regulate and supervise Financial Institution

11.1. Using law enforcement

11.1.1. CBA 2019

11.1.2. FCA 2013

11.1.3. IFSA 2013

11.2. BNM together with FI work closely to

11.2.1. - promote and maintain banking and financial services to the public

11.2.2. - foster high standard of banking finance in Malaysia