Laws and Regulations in Malaysian Banking

Learning Outcomes

By the end of this course, you should be able to:

• Demonstrate a clear understanding of the laws and regulatory frameworks that govern the Malaysian banking industry.

Key Topics Covered

This course discusses the following areas:

• The regulatory framework governing the banking sector
• An overview of legislation affecting the credit function
• Important provisions of the Financial Services Act 2013 (FSA 2013) relevant to credit activities
• Guidelines issued by Bank Negara Malaysia (BNM) relating to credit and financing
• The Foreign Exchange Administration (FEA) Rules and Notices
• Additional laws and regulatory instruments that complement and support the banking industry

Assessment Expectations

In the examination, you will be required to:

• Explain the importance of laws and regulatory oversight in the Malaysian banking system
• Differentiate between legislation, regulatory requirements, supervisory guidelines, and ethical standards in banking
• Recognise and describe the main provisions of the Financial Services Act 2013 (FSA 2013) and related legislation that govern credit risk management
• Identify Bank Negara Malaysia (BNM) guidelines on credit, including key requirements under the Foreign Exchange Administration (FEA) Rules and Notices that impact credit activities
• Apply the relevant provisions of key banking and credit-related laws and regulations to practical scenarios