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Basel III Updates This 34 page presentation which was delivered during the Bank Tech Asia Conference in 2011 is contributed by Mr. Eckart Koerner, Executive Director, Advisory, Financial Risk Management Services, KPMG Business Advisory Sdn Bhd. New Guidelines for Credit Rating Agencies The Securities Commission (SC) issued new guidelines that will enable the regulator to supervise credit rating agencies (CRAs) to enhance the agencies' standard in key areas, such as transparency of rating criteria and policies, objectivity of rating process, managing conflicts of interest and to enable the SC to supervise CRAs in a more vigorous manner. The objective is to enable Malaysia's CRAs to converge with the international standards and best practices set out by IOSCO and other advanced jurisdictions. A copy of the guidelines is now available here. Central Bank of Malaysia Act 2009 This legislation provides a clearer mandate to safeguard financial stability and imposes stricter rules on corporate governance and transparency. It also provides clarity to the mandate for which the Bank is accountable. It defines financial stability in terms of the risks confronting the said stability, the risk of disruption of the financial intermediation process, the risk of disruption in the functioning of financial markets and the risk of a loss of confidence. Section 29 defines the threat to financial stability as a risk which in the opinion of the Central Bank of Malaysia disrupts, or is likely to disrupt, the financial intermediation process. The new legal framework also reinforces the Central Bank of Malaysia's power to provide liquidity assistance to financial institutions and enter into arrangements with other central banks. Section 34 provides that the Central Bank of Malaysia can provide liquidity assistance against any form of collateral it deems sufficient, effectively giving it a lot of discretion in back-stopping in the financial system. A copy of the Act can be obtained here. Financial Rerpoting Standard 139 This is the current standard approved by the Malaysian Accounting Standards Board. A copy of the same can be obtained from here. Takaful Act 1984 A copy of the Act can be obtained here. Government Funding Act 1983 A copy of the Act can be obtained here. Other legislations and legal frameworks not listed here can be obtained by clicking here. |
