Malaysia central bank updates exposure draft on digital banks licensing

Bank Negara Malaysia on Tuesday (Mar 3) issued an updated Exposure Draft on the licensing framework for digital banks.

The central bank said in a statement that the update incorporates the proposed simplified regulatory framework for digital banks applicable during the foundational phase.

The simplifications are meant to reduce regulatory burden for new entrants, said BNM.

Key features of the simplified regulatory framework include tweaks to capital adequacy and liquidity requirements.

The consultation period for the Exposure Draft is extended to April 30 from the original Feb 28.

BNM issued the Exposure Draft on Dec 27, saying it would allow up to five licences for digital banks to conduct either conventional or Islamic banking to address “underserved and unserved segments”.

The updated exposure draft and application procedures can be found in this link. 

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