Bank Negara Malaysia Issues Updated Virtual Banking Draftby Vincent Fong March 3, 2020
Following the first exposure draft for the regulatory framework for virtual banks in Malaysia published in December 2019, Bank Negara Malaysia today published an updated draft.
The regulator said in a media statement that the updated drafted incorporated proposed “simplified regulatory framework for digital banks applicable during the foundational phase” to “reduce regulatory burden for new entrants that have strong value propositions, whilst safeguarding the integrity and stability of the financial system”
The draft framework remains largely the same but with some changes to the capital adequacy requirements and liquidity requirements. Further details on the updated draft can be found here
The feedback for the draft has been extended to April 2020, it was previously announced that Malaysia will be ready to receive digital banking license applications by the first half of this year