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. To facilitates improvements in payment services and market developments

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

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

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

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

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

4. 9. To exercise oversight over payment system

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

4.2. To reduce the overall risks in payment systems

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

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

6. 6. To regulate and supervise Financial Institution

6.1. Using law enforcement

6.1.1. CBA 2019

6.1.2. FCA 2013

6.1.3. IFSA 2013

6.2. BNM together with FI work closely to

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

6.2.2. - foster high standard of banking finance in Malaysia

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

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

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

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

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

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

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

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

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

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