Malaysia Guidelines on Liquidity Framework

• Date: May 27, 2013
• Source: bnm.gov.my

The Liquidity Framework was introduced in 1998 to enhance liquidity management in banking institutions. It replaced the liquid asset ratio requirement. The Framework sets out to:

• Create awareness among banking institutions of their funding structure and their ability to handle short to medium-term liquidity problems
• Adopt a more efficient and on-going liquidity measurement and management for banking institutions
• Provide the Bank Negara Malaysia (BNM) with a better means of assessing the present and future liquidity position of banking institutions.

The Liquidity Framework is applicable to all commercial banks, finance companies and investment banks/merchant banks.
 

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