Bank Negara Malaysia

Profile narrative

Bank Negara Malaysia, also known as BNM, is the central bank of Malaysia. It is responsible for formulating and implementing monetary policy to maintain price stability and support sustainable economic growth. The bank issues the Malaysian ringgit as the sole legal tender and manages the nation's currency supply. BNM oversees the regulation and supervision of financial institutions, including banks, insurance companies, and payment service providers, to ensure a sound and resilient financial system. It also operates and oversees the national payment and settlement systems, promoting efficiency and safety in retail and wholesale transactions. Additionally, the bank manages Malaysia's official foreign reserves and acts as the banker and financial adviser to the Malaysian government.

As the country's monetary authority, BNM's mandate extends to safeguarding financial stability and fostering a conducive environment for investment and commerce. It conducts regular assessments of systemic risks and employs macroprudential tools to mitigate potential threats to the financial sector. The bank also promotes financial inclusion and consumer protection through various initiatives and regulations. Its role as the issuer of currency gives it a unique position in ensuring the integrity and authenticity of money circulating in the economy. BNM's functions are grounded in the Central Bank of Malaysia Act 1958, which defines its powers and responsibilities.

BNM places strong emphasis on the security and resilience of its own information technology infrastructure, as demonstrated in October 2018 when it detected and thwarted unauthorized attempts to transfer funds from its systems. The incident highlighted the bank's effective detection and prevention capabilities, allowing it to intercept illicit activity and safeguard financial assets while maintaining system integrity. This response underscored BNM's commitment to robust cybersecurity protocols in protecting critical national financial infrastructure from malicious actors. Beyond its defensive posture, the bank actively contributes to the development of national cybersecurity standards for the financial industry and collaborates with other agencies to enhance collective resilience.

Bank Negara Malaysia is a statutory body wholly owned by the Government of Malaysia, operating under the authority of the Central Bank of Malaysia Act 1958. It is not a commercial entity and does not have shareholders; its capital is provided by the state. The bank's governance structure includes a Board of Directors appointed by the Yang di-Pertuan Agong, with the Governor serving as the chief executive officer. This public ownership aligns its objectives with the broader interests of the nation's economy and financial system.

Incidents

1 incident linked to this organisation.